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TripleU
New Member

Trying to figure out sales tax paid on a car purchase in 2022

I made a car purchase in 2022. Let's say the total price was $100,000 + $8,380 (sales tax) =$108,380. A down payment of $40,000 was made at the time of purchase. The rest was financed with a monthly payment of roughly $1000 per month. 

 

I am trying to do itemized deduction and the car is for personal use. To calculate the sales tax paid, would I just do $40,000 x 8.38% and the number will be the sales tax paid? What about the monthly loan payment? How do you calculate the sales tax paid in that?

 

Thanks in advance!

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5 Replies

Trying to figure out sales tax paid on a car purchase in 2022

Do you not have an invoice from the car purchase that shows the sales tax paid?

**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.**

Trying to figure out sales tax paid on a car purchase in 2022

you answered your own question.

 

"$8,380 (sales tax) "

 

you can add this amount to the general sales tax amount generated by TurboTax.

 

There's no sales tax on financed car payments.

 

@TripleU 

Trying to figure out sales tax paid on a car purchase in 2022

 

SALES TAX

You can enter the sales tax you paid for the car you purchased in 2022 by going to Federal>Deductions and Credits>Estimates and Other Taxes Paid> Sales Tax.  You will be asked if you paid sales tax on a major purchase, and you will be able to enter the sales tax you paid for your new vehicle. 

Sales tax is an itemized deduction. “Major purchases” that you can enter for the sales tax deduction include:

Motor Vehicles (cars, trucks, motor homes, RV’s, sport utility vehicles and off-road vehicles

Aircraft or boats

Mobile homes

Manufactured housing

Building materials for major home improvements

You cannot deduct: furniture, jewelry, home electronics such as TV’s or computers

https://ttlc.intuit.com/questions/1901222-which-deduction-should-i-choose-sales-tax-or-income-tax

https://ttlc.intuit.com/questions/2566624-how-much-sales-tax-did-i-pay-last-year

https://ttlc.intuit.com/questions/3148443-how-do-you-define-major-purchase-or-major-item-for-the-sal...

https://ttlc.intuit.com/questions/1900791-how-do-i-find-my-local-sales-tax

https://ttlc.intuit.com/questions/2566624-how-much-sales-tax-did-i-pay-last-year

 

 

 

**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.**
TripleU
New Member

Trying to figure out sales tax paid on a car purchase in 2022

The invoice does not specifically state how much I paid for the sales tax (it does list the total sales tax). It shows the grand total minus the down payment and the amount financed (and the monthly payment). 

TripleU
New Member

Trying to figure out sales tax paid on a car purchase in 2022

I would think if I paid in full then the sales tax would be $8,380. But since I paid the down payment and slowly paid it down over 6 years, the sales tax that I actually paid is whenever I make a payment, no?

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