There are two possibilities for why you are not getting a deduction for 2021 if you entered your vehicle registration fees:
- You have already maxed out the state and local tax deduction
You are limited to a $10,000 deduction on your federal income tax return for state and local taxes. In addition to your vehicle registration fee, this would include any real estate taxes as well as state income tax.
- You are not itemizing deductions
The vehicle registration fee is an itemized deduction. If the TurboTax software determines that you have a more favorable tax outcome using the standard deduction, it will not use the itemized deductions, and therefore your vehicle registration fee will not lower your taxes. For more information on standard or itemized deductions, please see this article.
