In October 2019, I purchased a 2016 Honda from a local dealership in Washington state. My question is: Should I claim the sales taxes on that purchase?

loveourpits — Sun, 29 Mar 2020 15:52:39 GMT

Re: In October 2019, I purchased a 2016 Honda from a local dealership in Washington state. My question is: Should I claim the sales taxes on that purchase?

xmasbaby0 — Sun, 29 Mar 2020 16:07:33 GMT

If you have enough other itemized deductions like mortgage interest and property tax, etc. to exceed your standard deduction, then entering the sales tax on your car might help--otherwise it will have no effect.

STANDARD DEDUCTION

Many taxpayers are surprised because their itemized deductions are not having the same effect as they did on past tax returns. The new higher standard deduction and the elimination of certain deductions, as well as the cap on state and local taxes have had a major impact since the new tax laws went into effect beginning with 2018 returns.

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. 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.

2019 Standard Deduction Amounts

Single $12,200 (+ $1650 65 or older)

Married Filing Separate $12,200 (+ $1300 if 65 or older)

Married Filing Jointly $24,400 (+ $1300 for each spouse 65 or older)

Head of Household $18,350 (+ $1650 for 65 or older)

Look on line 9 of your 2019 Form 1040 to see your itemized/standard deduction amount

Re: In October 2019, I purchased a 2016 Honda from a local dealership in Washington state. My que...

ColeenD3 — Sun, 29 Mar 2020 16:07:43 GMT

Yes, you can. It will only help if you itemize instead of taking the standard deduction.

topic In October 2019, I purchased a 2016 Honda from a local dealership in Washington state. My question is: Should I claim the sales taxes on that purchase? in Get your taxes done using TurboTax

In October 2019, I purchased a 2016 Honda from a local dealership in Washington state. My question is: Should I claim the sales taxes on that purchase?

Re: In October 2019, I purchased a 2016 Honda from a local dealership in Washington state. My question is: Should I claim the sales taxes on that purchase?

Re: In October 2019, I purchased a 2016 Honda from a local dealership in Washington state. My que...