First, as stated above, the vehicle registration needs to be based on the "value" of the car.
Not all states do it this way.
If every vehicle is charged the same amount, the registration is NOT based on value since not all cars are not worth the same amount.
Some states have a portion of the registration based on the value of the vehicle, so only part of the fee is deductible.
Next, as also stated above, in order for taxes paid to matter on your federal return, you must
1. Itemize Deductions (file Schedule A) rather than take the Standard Deduction
2. Limit the amount of total tax you claim on the Schedule A to 10,000. This includes Sate Income tax, property tax, and, vehicle registration TAX (if applicable) OR state sales tax paid.
Additionally, taxes that you are allowed to deduct are taxes you were obligated to pay.
If you pay the registration for a friend, the IRS would look at this as a gift made by you.
If you pay the "value based" registration on a car your child owns but that you co-signed on, you could claim that since you have an "interest" in that vehicle.
In this scenario, you (or your child) are obligated to pay the registration tax on the vehicle because if you don't keep it legal, you could loose the car and be liable for the loan.
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