MargaretL
Expert Alumni

Deductions & credits

No, you cannot add it to your W-2 but you go to Deductions & Credits and visit Cars and Other Things You Own and Sales Tax in Deductions and Credits- you may be able to deduct some items associated with the car.

  1. Federal Taxes 
  2. Deductions and Credits
  3. Scroll down to Cars and Other Things You Own   
  4. Also, scroll down further to Estimates and Other Taxes Paid and select Sales Tax to enter sales tax paid on the purchase.

Note: Above deductions are part of your itemized deductions. If you don't claim mortgage interest, real estate taxes, your car deductions will not make a difference on your tax return.