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I purchased a car towards the end of the year. I put down a down payment and made a few payments towards it. How do I calculate how much to put on the deductions section?

 
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Expert Alumni

I purchased a car towards the end of the year. I put down a down payment and made a few payments towards it. How do I calculate how much to put on the deductions section?

Are you trying to report sales tax paid on the vehicle purchase? If so, you may be able to claim an itemized deduction for any sales taxes if your itemized deductions exceed your standard deduction for your filing status. When you make your entries, TurboTax will leverage the best deduction for you. 

 

Here's how to enter the sales tax you paid:

  1. With your tax return open in TurboTax, search for sales tax and then select the Jump to link in the search results.
  2. On the Sales Tax and Income Tax screen, select Continue with Sales Tax.
    • In the CD/download software, the screen name will be Let's Compare Your Sales Tax and Income Tax – click Try Sales Tax.
  3. When asked how you want to enter your sales tax, select EasyGuide.
  4. Answer the questions on the next few screens. When you get to the Major Purchases screen, answer Yes.
  5. Follow the onscreen instructions to enter your info.

These instructions can also be found in the original article here.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

1 Reply
Expert Alumni

I purchased a car towards the end of the year. I put down a down payment and made a few payments towards it. How do I calculate how much to put on the deductions section?

Are you trying to report sales tax paid on the vehicle purchase? If so, you may be able to claim an itemized deduction for any sales taxes if your itemized deductions exceed your standard deduction for your filing status. When you make your entries, TurboTax will leverage the best deduction for you. 

 

Here's how to enter the sales tax you paid:

  1. With your tax return open in TurboTax, search for sales tax and then select the Jump to link in the search results.
  2. On the Sales Tax and Income Tax screen, select Continue with Sales Tax.
    • In the CD/download software, the screen name will be Let's Compare Your Sales Tax and Income Tax – click Try Sales Tax.
  3. When asked how you want to enter your sales tax, select EasyGuide.
  4. Answer the questions on the next few screens. When you get to the Major Purchases screen, answer Yes.
  5. Follow the onscreen instructions to enter your info.

These instructions can also be found in the original article here.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

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