Yes, the sales tax that you paid on your vehicle can be deducted. However, it may not be beneficial for you to do so.
Sales tax is part of Schedule A itemized deductions. You have a choice to use the sales tax deduction or the state and local taxes deduction. As you go through TurboTax, you can compare these two possible deductions and choose the one that is better for your tax situation.
Use these steps to go to that section of your return:
- On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner)
- This opens a box where you can type in “sales tax” (be sure to enter exactly as shown here) and click the magnifying glass (or for CD/downloaded TurboTax, click Find)
- The search results will give you an option to “Jump to sales tax”
- Click on the blue “Jump to sales tax” link and enter your information
See the following TurboTax help article for more information:
Can I claim the sales tax deduction?
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