Yes but you
would only be able to claim this deductions if you itemize and take the state sales tax deduction (as opposed to the state income tax deduction). If this is
your only itemized deductions, you will want to just take the standard
deduction.
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.
Alternatively, to enter your sales taxes and 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"
- 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.
As
noted above: you are only allowed the major purchase additional sales tax
amount if the sales rate you used for 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 vehicle 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
