topic Car licensing deduction in Deductions & credits

Car licensing deduction

as63 — Wed, 05 Feb 2020 19:44:11 GMT

I entered my car licensing fees for 2019 but that total is not appearing in the total deductions. Why is this?

Re: Car licensing deduction

CatinaT1 — Wed, 05 Feb 2020 20:17:51 GMT

The property tax you pay on your vehicle is an itemized deduction. You will not see this number unless you itemize.

When you enter all your information into TurboTax, it will calculate the best deduction for you to use - either the standard deduction or itemized deduction.

You may benefit from itemizing your deductions on Schedule A if you:

Do not qualify for the standard deduction, or the amount you can claim is limited,
Had large out of pocket medical and dental expenses during the year,
Paid interest and taxes on your home,
Made large contributions to qualified charities, or
Have total itemized deductions that are more than the standard deduction to which you otherwise are entitled.

Re: Car licensing deduction

as63 — Wed, 12 Feb 2020 02:06:33 GMT

I entered my vehicle licensing taxes totaling just over $1,000. This amount, in addition to my other itemized deductions, totals more than the $24,400 standard deduction for married filing jointly. The vehicle licensing amount appears on the 2019 deductions and credits section, but disappears on the 2018 and 2019 Deductions and Credits window. Why is this?

Re: Car licensing deduction

MaryK4 — Wed, 12 Feb 2020 02:13:29 GMT

Did the aggregate of your deductible taxes exceed the $10,000 limit?

@as63

Re: Car licensing deduction

as63 — Sat, 15 Feb 2020 18:36:23 GMT

I paid $7,912 in property taxes, $933 in sales tax, and $15,164 was withheld from my and my husband's pay in federal withholding.

Re: Car licensing deduction

RobertG — Sat, 15 Feb 2020 18:58:49 GMT

The total deduction for State and local taxes, property tax, and personal property tax is limited to $10,000.

See Schedule A line 5e

@as63

Re: Car licensing deduction

as63 — Sat, 15 Feb 2020 20:15:27 GMT

As I said in my previous message, my state sales tax deduction is $933, my property tax deduction is $7,912, and my FEDERAL tax withheld from pay is $15,164. You are telling me that the TOTAL deduction for state and local taxes is $10,000. My total state and local tax deduction without taking into account the vehicle licensing taxes of $1,038, is $8,845. This amount is obviously less than $10,000 limit on state and local tax deductions so the question is WHY IS TURBOTAX NOT ALLOWING ME TO DEDUCT THE $1,038 IN VEHICLE REGISTRATION FEES?

Re: Car licensing deduction

RobertG — Sat, 15 Feb 2020 20:20:11 GMT

I would suggest that you schedule a callback with a TurboTax expert to get this resolved.

The expert will be able to see your TurboTax screens to guide you screen-by-screen and offer advice.

To schedule a call, click on 'Help' in the top of your screen on the right.

Then select 'Contact us'

Then 'Talk to a person'

Re: Car licensing deduction

DoninGA — Sat, 15 Feb 2020 20:24:24 GMT

If your State and Local income taxes paid in 2019 were $8,845 and your property taxes paid in 2019 were $7,912 then you have reached the State, local, property, and sales tax (SALT) deduction maximum of $10,000.

Re: Car licensing deduction

as63 — Tue, 18 Feb 2020 18:50:10 GMT

Read the numbers again please. State and local taxes were $933 NOT $8,845.

Re: Car licensing deduction

DoninGA — Tue, 18 Feb 2020 19:02:28 GMT

@as63 wrote:

Read the numbers again please. State and local taxes were $933 NOT $8,845.

Let's start over. What state is your resident state?

Please enter your numbers:

State Sales Taxes paid -

State and Local income taxes withheld -

Property Taxes paid -

Vehicle Taxes Paid -

Your federal income taxes withheld are not relevant for itemized deductions on Schedule A.

Re: Car licensing deduction

KarenJ2 — Tue, 18 Feb 2020 19:09:09 GMT

It may be due to the way TurboTax continually compares your itemized deductions to your standard deduction. If TurboTax calculated that your standard deduction is greater than your itemized deduction (including the car licensing deduction) , the car licensing deduction may not appear.

In TurboTax, under summary of tax breaks, scroll down to the bottom of the page and click on Wrap up tax breaks. The next screen will show you whether your standard deduction or itemized deductions are higher. Under the two numbers, click on Show my the breakdown of my itemized deductions. See if it is included.