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Is Car Registration Fee only applicable for Itemized deduction?

In Washington near Seattle, we have an RTA fee tacked on to our car registration, so we can have a yearly tab of around $500 to $1000. It's supposedly deductible but I'm not sure how to apply it. I normally use the standard deduction of $12,400 so I don't know if the car registration deduction is separate, or I have to itemize for it to apply. Are medical expenses such as Urgent Care and out of pocket visits also itemized, included with standard deduction, or separate? 

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Is Car Registration Fee only applicable for Itemized deduction?

Any of the things you mentioned are only itemized deductions.   They will not make any difference in your tax due or refund unless all of your itemized deductions add up to more than your standard deduction.

 

Your itemized deductions have to be more than your standard deduction before you will see a change in your tax owed or tax refund.  The deductions you enter do not necessarily count “dollar for dollar;” many of them are subject to meeting  tough thresholds—medical expenses, for example, must meet a threshold that is pretty hard to reach. (Only the amount that is MORE than 7.5% of your AGI counts)   The software program uses all the IRS rules that apply to the expenses you enter, and it tells you if you have enough to use your itemized deductions or if using the standard deduction is more advantageous for you.  Under the new tax laws, some deductions have been capped—there is a $10,000 limit to the itemized deductions for state, local, property and sales taxes.

 

Your standard deduction lowers your taxable income.  It is not a refund.  You will see your standard or itemized deduction amount on line 12 of your 2020 Form 1040.

 

 

2020 Standard Deduction Amounts

 

Single $12,400   (+ $1650 65 or older)

Married Filing Separate  $12,400   (+ $1300 if 65 or older)

Married Filing Jointly $24,800   (+ $1300 for each spouse 65 or older)

Head of Household $18,650  (+ $1650 for 65 or older)

 

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
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