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Level 1

Question

Property tax/vehicle registration deduction in North Carolina

Forum|Forum|7 years ago
June 6, 2019
8 replies
15 views

This question on the form is confusing. I have two line items on my notice for payment for property tax and vehicle registration. There's the property tax on the vehicle, the registration, and the total. I am up to the car registration fees section of the form. Do I put just the registration, just the property tax, or both? The property tax section looks to be only for planes and boats

NC-tax-mom

Level 2

Definitely just list Property Tax, not registration fees, for vehicles in NC. Confusion comes this year on TT as to where to list it: Under Boats and Planes Personal Property Tax (where we have listed it in years past) or under Vehicle Registration Fee where TT has a note that NC Vehicle Property Tax can be claimed?

SteamTrain

Level 15

The forms were updated to include NC in the Vehicle Registration area.....so just put-em there.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

NC-tax-mom

Level 2

ok, thanks

SteamTrain

Level 15

Just the property tax part....not the registration fee or any fee that is a flat fee:

just anything with a listed "Tax Rate Per $100 Value"

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

sailorman7447

Level 2

When I look at 2020 and 2021 deductions and credits, I appears that for Vehicle Registration Fees in 2020 I received a credit of $300 of $472 claimed, whereas in 2021 I received $0 of $497 claimed.

Why is this?

Jquez

Level 4

This is what I see on TurboTax for NC. Only county tax can be included it appears, not the city tax, or registration fee. Someone please let me know if this is correct. Thanks!

RobertB4444

Level 15

@Jquez Yes, it's correct.

Since 2013 North Carolina has combined the annual property tax payment to the county in which you live with the annual vehicle registration fee that goes to the state.

The portion that is deductible on the tax return is that property tax portion that is based on the value of the vehicle and is paid to the county

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SomeDude2

Level 2

So in NC, can you deduct both the car registration fees and the car county taxes or is it one or the other? In TT, it shows car registration in the title but then also mentions taxes paid to the county. So do you add those together?

Enter your car registration fees

Enter the deductible portion of your car registration fee. Learn more

In North Carolina, you can deduct the Vehicle Property Tax paid to your county on your vehicles.

DMarkM1

Level 15

No, only the property tax portion paid is an itemized deduction. NC is nice enough to separate those out for you for easy entry in the "Deduction and Credits" section using the "Car Registration" topic in TurboTax.

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alyssasnow7

Level 2

@DMarkM1 Do you still only enter the County portion for NC and not the City or Special taxing?

AnnetteB6

Level 15

It depends. If the city or special taxing is based on the value of your vehicle, then it can be added to the county portion to be deducted.

If those other amounts are a flat tax or based on something other than the value of your vehicle, then they are not deductible.

@alyssasnow7

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S51

Level 2

I just want to be sure I have this right - it's my first time being able to add NC Vehicle Tax deductions to my itemized return. Appreciate the help.

My documentation shows the below breakout. Need a little help with what portion of the total tax amount can be used for itemized deduction.

- If only taxes based on vehicle value are deductible, then that rules out the $30 for Wendell VFee, correct? I have two cars of different value and that is a consistent fee amount on both

- I am unclear which of the three fields that are determined based on value should be included in my deduction. Are they all 3 tax deductible, or only the Wake County portion?

Taxing Unit Tax Rate Amount

Fire Tax Dist 0.122500 $10.45

Wake County 0.517100 $44.11

Wendell 0.420000 $35.83

Wendell VFee $30.00

Total Property Tax $120.39