Only the Sales Tax and car registration fees associated with the purchase of the car can be deducted for tax purposes. These are considered Itemized Deductions. You should be able to find these amounts on your sales contract from the dealership.
Congratulations on your purchase! Here's how to enter the sales tax you paid:
- With your tax return open in TurboTax, search for sales tax and then select the Jump to link in the search results
- On the Sales Tax and Income Tax screen, select Continue with Sales Tax
- In the CD/download software, the screen name will be Let's Compare Your Sales Tax and Income Tax – select Try Sales Tax
- When asked how you want to enter your sales tax, select EasyGuide
- Answer the questions on the next few screens. When you get to the Major Purchases screen, answer Yes
- Follow the on-screen instructions to enter your info
To enter Car registration fees, Follow these directions:
- With your return open, search for car registration inside your program.
- Select the Jump to link at the top of your search results.
- Answer Yes to Did you pay any car registration fees in 2022? and then enter them on the next screen.
Use this link to learn more about Itemized Deductions
