Sales/Use tax paid may be deductible, but this is usually only a benefit in
states that do not have a state income tax as only the higher of the two is
deductible. TurboTax will calculate which amount is most beneficial for you to deduct.
States that don't levy an income tax: Alaska, Florida, Nevada, South
Dakota, Texas, Washington, and Wyoming
To
enter sales tax in to TurboTax:
- Click the Federal Taxes tab
at the top (or the Personal tab
if using Home & Business)
- Then, Deductions & Credits
- Scroll
down to the "Estimates and Other Taxes Paid section",
click Show more
- Next to
"Sales Tax" click Start or Update
- Follow
the interview screens to input this information
Also, having purchased your car in California, you may
be able to deduct certain taxes for the fees you pay for your vehicle
registration or vehicle license. Please note these must be based on your
vehicle's value.
California is on the list of states that charge a tax based on vehicle value. To browse the full list of states that charge deductible vehicle fees,
please see
this post
.
To
enter Car
Registration Fees/Personal Property Taxes:
- Click the Federal
Taxes tab at the top (or the Personal tab if using Home & Business)
- Then, Deductions & Credits
- In the
"Cars and Other Things You Own" section, click Show more
- Next to
"Car registration fees", click Start or Revisit/Update
- Then,
follow the interview screens from there
