Deductions & credits
First, the car you purchased is not a deduction, but the sales tax could be. In the sales tax section, choose Easy Guide and tell the software about the car purchase on the page Enter Major Purchases.
Here's how you can navigate to the sales tax entry in TurboTax Online:
- Navigate to Federal > Deductions & Credits > Estimates and Other Taxes Paid > Sales Tax > Start or Revisit
If you're itemizing, you must choose between deducting your state and local income taxes or your state and local sales taxes. You can't claim both.
Next, for the 1098-T, since you were reimbursed by your employer (and if you were not taxed on the reimbursement because it was less than $5,250), you can elect not to enter the 1098-T. Alternatively, you can enter the amount received as reimbursement in the 1098-T section. Continue through the 1098-T entry until you arrive at Scholarships and Financial Aid.
Note, your refund may increase if you received reimbursement in excess of the tax-free amount ($5,250 in 2024) as those expenses would be allowed. If that is the case, only enter $5,250 in the box for Employer-Provided Assistance.
