Is my local Motor Vehicle Tax in Connecticut deductible on my federal taxes?

[AndreaG · Accepted solution]

Yes. You can take a deduction on your federal tax return for the personal property tax that you paid in 2016 as long as you qualify to itemize your deductions. 

To itemize your deductions, you would have to have personal expenses such as medical and dental expenses, mortgage interest, real estate taxes, unreimbursed job expenses and certain miscellaneous expenses, and charitable contributions that when combined together, total more than your standard deduction. For example if you file single, your standard deduction is $6300 so you would have to have personal expenses that total more than $6300.

To enter personal property tax in Turbo Tax:

• click on "federal tax"
• click on "deductions and credits"
• scroll down to "cars and things you own". Personal property tax is in this section.

[hanginglimbs]

Should I be entering this as a car registration fee or as a property tax payment? The property tax payment specifies land/house, but I feel like this CT supplemental motor vehicle tax is more akin to the property tax than the car registration fee