turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Is there a place to enter motorcycle registration fee or do I enter it in the car registration fees

 
Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Reply
GeoffreyG
New Member

Is there a place to enter motorcycle registration fee or do I enter it in the car registration fees

As long as your vehicle registration or license fee for your motorcycle includes taxes based on the value of the vehicle, you're eligible for this deduction, and you would input it in the same data entry field as for an automobile (car) registration.  However, this tax deduction requires some explaining, so please bear with us while we do that.

First, taxpayers hoping take this deduction should understand that it applies only to the part of the registration / licensing fee that is based on the value of the vehicle itself (a motorcycle in this particular instance), and not that part of the registration / licensing fee that is a flat rate for all such vehicles.

This "fee based on value" is called an excise tax, and that's what makes it tax deductible under federal law.  The legal reasoning is as follows.

The IRS only allows that portion of a state registration fee that is based on the value of the vehicle to be included toward your other itemized deductions.  Any flat fee portion doesn't count.  This is why there are some 20+ states whose residents can potentially benefit from the deduction; but the remainder cannot:  their states do not charge vehicle registration fees by value, and instead charge flat fees only.

There is a list of these qualifying states built-into the TurboTax software.  A graphical image of this chart of states is also shown in one of the screen-capture images at the bottom of this answer (simply click to enlarge).

If your state is on the list, then you can enter the vehicle excise tax amount (on a motorcycle registration) in TurboTax.  To do so mechanically in the software, you will want to have your tax return open and locate the Search / Find box on your screen.  Next, type in the exact search string "vehicle registration fees" and then click on the Jump To link that should appear beneath.  This will take you to the appropriate data entry place in the program.  Please see the screen-capture images below for a visual illustration of the process.

Finally, it is also important to keep in mind that you (or anyone claiming this deduction) may or may not actually see any net tax benefit from including this item on your tax return.  The reason for this is that you must have enough itemized deductions (in total) to exceed the standard deduction available to all taxpayers.  Since more than 2 in 3 taxpayers do not, most people end up taking the (more valuable) standard deduction, rather than itemizing deductions.  If you input all your data carefully, however, including a motorcycle registration excise tax, the TurboTax software will make that determination for you.

Thank you for asking this question.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies