To enter this
transaction in TurboTax, log into your tax return (for TurboTax Online sign-in,
click Here and click on "Take
me to my return") type "Sales Tax Deduction" in the search bar
then select "jump to Sales Tax Deduction". TurboTax will guide you in
entering this information.
Please note that you will only be able to take this deduction if you itemize on your return. The TurboTax program will give you the greater of the standard deduction or the itemized deduction based on your particular situation:
To enter your general sales
taxes and sales tax on major purchases in TurboTax Online or Desktop, please follow these steps:
- Once you are in your tax
return, click on the “Federal Taxes” tab ("Personal" tab in
TurboTax Home & Business)
- Next click on “Deductions
& Credits”
- Next click on "jump to
full list" or “I’ll choose what I work on”
- Scroll down the screen until
to come to the section “Estimates and Other Taxes Paid ”
- Choose "show more",
then Sales Tax (start/update/revisit)
- Choose - continue to sales
tax and choose "Easy Guide'
- You will be able to enter
your state information and dates in the state
- Enter your state sales tax
information (If your state sales tax information is already entered you
will need to edit it to enter your major purchases information.)
- On the screen that says
Major Purchase - select "yes"
- Enter your vehicle
information and sales tax here on the next screen.
If you are having any issues with entering your major purchase information, just use change the information so that your general state sales tax
rate is the same sales tax rate on your major purchase.
So if
you used a 8% general sales tax rate for your state, this would have to be the
same sales tax rate for your car purchase. Just make sure that when you enter
this information under the "Major Purchase" section, that your sales
tax divided by your cost is your general state's sales tax rate.
For example, if your car sales tax is $1,000
and your general rate is 8% then the cost has to be $12,500 for the system to
allow these sales tax on a major purchase.
