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Deductions & credits
Yes, you may claim sales taxes for the purchase of your vehicle. To report:
- Log into Turbo tax
- Go to deductions and credits>estimates and other taxes paid
- Sales tax
- Select the easy guide
- When you arrive there, the first screen will have you pick a location and then enter the sales tax rate in your area.
- Once you record the information., select done.
- Next screen will ask if you made any major purchases. Here you enter the sales tax information for the car that includes the cost, sales tax paid, and the sales tax paid.
Just an FYI, if you itemize deductions, you may either deduct the state and local general sales tax you paid during the year, or you can deduct the state and local income tax you paid during the year. You can't do both. The federal cap for this deduction is $10,000.
Also, your tax payments may be below the standard deduction amount that xmasbaby0 mentions above. I mention this because if your itemized deductions do not exceed the standard deduction, then Turbo Tax will choose the deduction that is right for you. I have seen many questions 'asked why hadn't your tax return changed after entering your sales tax information. This is why.
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‎January 17, 2024
8:23 AM