Active Military

[srobert1]

My son is active military and stationed in NC.  His state of residency is Texas.  He bought a truck in NC and pays NC vehicle registration each year.  Can he deduct the allowed portion of vehicle registration since NC is on the list of states that allow that or not because his home record is TX.  If he can, how does that work, for when I tried, it shows up as $0

[SteamTrain]

Yes, he can enter the sub-portion of the registration fees that are property taxes in the Vehicle/Car Registration area.  That deduction is independent of what state he is officially a resident of for tax purposes  (the software does recognize that people sometimes do have vehicles registered in states other than their own....and lets you put those $$ in to be used ....potentially)

...BUT ....nothing gets used as a deduction until his total itemized deductions entered already, reach-and-exceed his Standard Deduction.  IF he is single and no dependents, his itemized deductions would need to exceed $12,550 before any of his itemized deductions would start to have any possible effect.

[DianeW777]

No North Carolina tax return is required for your son unless he earns money outside of his military income from North Carolina sources.  Since his home state of record is Texas and there is no state tax income tax required in Texas there would be nothing he can deduct.  This is not a deduction for federal tax purposes.  If there is personal property tax, which is charged based on the value of the vehicle, this is allowed as an itemized deduction on the federal return.

Only state returns, and not all states, allow a deduction for the vehicle registration fees.

[SteamTrain]

@DianeW777 

Yes, local property taxes on vehicles are now included on the NC vehicle reregistration forms.  Like I said, that "Sub-Part" can be entered as a Registration fee  (or in the Personal Property Tax section).   The Deduction has nothing to do with TX...it is a potential Federal income itemized deduction.

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Here's one from 2014, but my 2021 form looks the same way.  Part of the NC ReReg is clearly a property tax: