2019 TurboTax Car Registration Shows Zero

[Dons]

I entered the 2019 Car Registration fee I paid, and yet, it still shows zero on the deduction summary page. Why?

[macuser_22]

Registration is not deductible.  Only that part of the registration that is a property tax that is based on the value of the vehicle is deducible and only if your state has such a tax.

It is a itemized deduction so of you do have enough other deductions to itemize then it will make no difference.

For 2018 and 2019 many taxpayers that itemized in the past will find that they can no longer itemize because the standard deduction has doubled so all of their itemized deduction s no longer exceed the standard deduction.

Only if all itemized deductions exceed the standard deduction will it be of benefit.

Not all itemized deductions count the full amount. Medical expenses are reduced by 7.5% of AGI so if your AGI is $30,000, for example, then only medical expenses more than $2,250 would be an itemized deduction.

The 2018 tax law also caps the total of Sales tax OR State and local income tax, Property (real estate and personal property) taxes at $10,000.

Mortgage interest on loans after Dec 16, 2017 may be limited.

The Mortgage must be secured by the property to qualify.

Interest on home equity loans and lines of credit are deductible only if the borrowed funds are used to buy, build, or substantially improve the taxpayer’s home that secures the loan.

You can check the actual amount of itemized deductions by using the Search Topics for "itemized deductions, choosing" (under "My Account, Tools" in the online versions). Click on "Change my deduction". That will display the actual amount of itemized deductions vs. the standard deduction. (Be sure to uncheck "Change my deduction" after checking it so you do not lock in the wrong deduction.


2019 standard deductions

$12,200 Single
$18,350 Head of Household
$24,400 Married Jointly

Add an additional $1,300 for over age 65 or blind
This amount increases to $1,650 if the taxpayer is also unmarried.

[Dons]

Ok, I think I understand. If I do not have enough deductions to make itemizing possible, it is not included. I assume, if it pushed me over the limit it would have been included. I took the Standard Deduction last year, I believe. And yet, my car registration was listed by TurboTax. But that is history. 

I do have a related question. I bought a new car in 2019 and paid over $4K in sales tax. This year by some method, TurboTax assigned a calculated sales tax for me, never asking about the car. Is their some way I can include that? I did not keep records to manually compute the sales tax I paid. Obviously, I am looking for some way I can increase my deductions and save some taxes. 

PS Thanks for the prompt reply!

[macuser_22 · Accepted solution]

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@Dons wrote:

Ok, I think I understand. If I do not have enough deductions to make itemizing possible, it is not included. I assume, if it pushed me over the limit it would have been included. I took the Standard Deduction last year, I believe. And yet, my car registration was listed by TurboTax. But that is history. 

I do have a related question. I bought a new car in 2019 and paid over $4K in sales tax. This year by some method, TurboTax assigned a calculated sales tax for me, never asking about the car. Is their some way I can include that? I did not keep records to manually compute the sales tax I paid. Obviously, I am looking for some way I can increase my deductions and save some taxes. 

PS Thanks for the prompt reply!

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Again, sales tax or state income tax (one or the other but not both) is an itemized deduction subject to the same rules.

ALL your itemized deductions must exceed the stranded deduction before there is any tax benefit.