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swonder
New Member

New Car - Massachusetts

I purchased a new car in Massachusetts in 2016, and want to make sure I'm including all the proper information related in my tax return. What can I claim in regards to this?
1 Reply
KenH1
New Member

New Car - Massachusetts

For your federal taxes, if you itemize deductions, you can deduct the either sales taxes (including on cars) or state income taxes.  For most people in MA, claiming  state income taxes makes more sense.  This deduction will not flow to your MA return as it is not deductible in MA. TurboTax will walk you through those questions:

Click Federal Taxes (top menu)

Click Deductions & Credits (just below top menu)

Scroll down to Estimates and Other Taxes Paid and click Show More

Click Start next to Sales Tax

Your excise taxes (based on the value of your car, paid to city/town) are deductible itemized deductions for both federal and MA.  Enter excise taxes at: Go to Deductions & Credits > Cars and Other Things You Own > Personal Property Taxes and it will flow to your MA return as well.

Registration, title, etc are not deductible.


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