Yes, use tax is the same as sales tax for the purpose of this deduction. The sales tax deduction is for "State and local general sales taxes, including compensating use taxes." - IRS Publication 17
The state sales tax deduction is allowed instead of your state income tax deduction, and is capped at $10,0000 ($5,000 if married filing separately).
It is part of itemized deductions, so your total itemized deductions must be more than your standard deduction to affect your taxes.
To enter the amount in TurboTax:
- Select Federal from the left side menu, then Deductions & Credits.
- Scroll down to Estimates and Other Taxes Paid and expand the section.
- To the right of Sales Tax, click Start or Revisit.
- Select Continue with Sales Tax.
- Select Easy Guide.
- Answer the questions about where you lived.
- On the screen Major Purchases, answer Yes.
- Enter the information about your car purchase.
- Continue through the section and TurboTax will let you know which deduction is best for you.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
