how do i claim a tax credit on a new car purchase and a new energy efficient water heater

nadomilke — Wed, 04 Feb 2026 01:23:26 GMT

in the past, it was labeled as a big-ticket item similar to purchasing a boat, etc.

Re: how do i claim a tax credit on a new car purchase and a new energy efficient water heater

xmasbaby0 — Wed, 04 Feb 2026 01:31:00 GMT

There may be two things to enter about the new car---car loan interest and sales tax.

CAR LOAN INTEREST

Go to Federal>Deductions and Credits>Cars and Other Things You Own>Car Loan Interest

The amount will go on Schedule 1a and end up on Form 1040 on line 13b

SALES TAX

You can enter the sales tax you paid for the car you purchased in 2025 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. Unless you have enough other itemized deductions to exceed your standard deduction the sales tax will have no effect on your tax due or refund.

“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

As for the hot water heater----certain kinds of hot water heaters may qualify for an energy credit.

Go to Federal>Deductions and Credits>Your Home>Home Energy Credits

Re: how do i claim a tax credit on a new car purchase and a new energy efficient water heater

KrisD15 — Wed, 04 Feb 2026 01:32:45 GMT

Yes, you can enter "big ticket" items under Sales Tax.

Deductions & Credits
Estimates and Other Taxes Paid
Sales Tax START

@nadomilke

topic how do i claim a tax credit on a new car purchase and a new energy efficient water heater in Deductions & credits

how do i claim a tax credit on a new car purchase and a new energy efficient water heater

Re: how do i claim a tax credit on a new car purchase and a new energy efficient water heater

Re: how do i claim a tax credit on a new car purchase and a new energy efficient water heater