1. New Vehicles:
- Personal vehicles used to commute to work are generally not tax deductible with the exception of car registration taxes which can be claimed as a part of the Itemized Deduction if you choose it over the Standard Deduction.
- If you choose to itemize your deductions, you can claim the sales tax paid on the vehicles since it considered a major purchase. It is important to understand that if your state income taxes paid are more than the registration taxes and sales tax, you would use the higher amount to a maximum of $10,000. Click here for an article with a great example.
- For the Hybrid vehicle, you can check online to see if it qualifies for a tax credit at https://fueleconomy.gov/feg/taxcenter.shtml
2. Annual Registration Fee:
- As mentioned above, you can claim the car registration fees if you itemize your deductions. The portion of your annual registration fees that is considered deductible is the amount which based on the value of the vehicle. Click here link with more information.
- VA car registration fees includes multiple factors including vehicle weight, type, and other factors. You would need to determine the portion of the fee that is deductible from your annual bill.
