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Level 2
posted Feb 27, 2023 10:07:53 AM

Can I add personal property taxes for the fee for new car registration (tax on the value) in IA, if itemizing? https://tax.iowa.gov/expanded-instructions/deduction-2019

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3 Replies
Expert Alumni
Feb 27, 2023 10:24:08 AM

Yes, in Iowa, you can deduct as property tax the Vehicle Registration Fee you paid based on your vehicle's value.

 

Please read this TurboTax Help article for more information.

Level 2
Feb 28, 2023 4:11:50 PM

Thanks for your quick reply!  To clarify, this is not the annual fee portion of the registration.  This is a one-time 5% new registration fee based on the value of the vehicle.  This is in addition to the annual registration fee.  Although the link present noted "annual" fee, just want to ensure this can still be added to the personal property tax portion if it is the one-time fee?  Thanks again!

Expert Alumni
Feb 28, 2023 5:04:50 PM

Yes. You can deduct an annual fee as a sales tax deduction. Iowa says "That 5% fee is only deductible on the IA 1040, Schedule A, line 4b if the taxpayer claimed an itemized deduction for general sales taxes paid on the federal form 1040, Schedule A, line 5a."

 

Here's how to do it:

 

  1. Type sales tax in Search in the top right
  2. Select Jump to sales tax
  3. On Let's Compare Your Sales Tax and Income Tax tap Try Sales Tax Deduction Anyway
  4. Tap EasyGuide on How do you want to enter your sales tax info?
  5. Fill out the screens. Say Yes on Major Purchases
  6. On Enter Major Purchases, enter your vehicle info and 5% fee

 

See Deduction.