Yes, you can claim a deduction for any sales tax paid on your new vehicle. Here's how to enter the sales tax you paid during 2019:
- With your tax return open in TurboTax, search for sales tax and then select the Jump to link in the search results.
- On the Sales Tax and Income Tax screen, select Continue with Sales Tax.
- In the CD/download software, the screen name will be Let's Compare Your Sales Tax and Income Tax – click Try Sales Tax.
- When asked how you want to enter your sales tax, select EasyGuide.
- Answer the questions on the next few screens. When you get to the Major Purchases screen, answer Yes.
- Follow the on-screen instructions to enter your info.
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You only deduct the sales tax you actually paid in 2019. However this includes sales tax you paid with a loan, because--since you promised to repay the loan--paying with a loan is treated the same as paying with cash for determining the deduction value. (If you failed to repay the loan that's a different story later down the road.)
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