The NC Highway Use Tax (HUT) is collected instead of sales
tax each time a title is transferred. It is deductible as sales
tax.
To go to the section of your return to enter the NC HUT, follow
the steps below. After you have answered
the preliminary questions in the sales tax section there will be a chance to
list large items and their sales tax amount.
This is where you will enter the NC HUT amount for your vehicle.
Be aware that you must be using Schedule A Itemized Deductions to
deduct sales tax. Also, your total sales
tax deduction is compared to state and local taxes, then the larger deduction
is used. So ultimately the NC HUT may
not actually be deducted on your
return.
For more information about NC HUT, see North Carolina Division of
Motor Vehicles.
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