ErnieS0
Expert Alumni

After you file

If you purchased a car, you may be able to claim an additional sales tax deduction or use mileage as a write-off, but you’ll have to upgrade to higher versions of TurboTax, as @xmasbaby0 said.

 

Self-employed

If you used a car for business, you would be asked to upgrade when you added a 1099-NEC or self-employed income. You can add vehicle expenses when you add other business expenses.

 

Sales tax

Generally, adding a car to your sales tax deduction will not be helpful unless if you live in a state without an income tax, because the IRS allows you to claim either sales tax or income tax, and the income tax deduction is usually higher. TurboTax does the math for you.

 

If you are able deductions such as home mortgage interest and property taxes and you upgraded to itemized deductions, you can enter your car sales tax in the sale tax section.

 

  1. Type sales tax in Search (the magnifying glass) in the top right
  2. Select Jump to sales tax
  3. On Let’s Compare Your Sales Tax and Income Tax, select Try Sales Tax Deduction Anyway
  4. On "How do you want to enter your sales tax info? select EasyGuide
  5. On Major Purchases, say YES to "Did you buy any major items while living in [your state]?
  6. On Enter Major Purchases, fill in your vehicle info
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