Date of Automobile License Fee Deduction: Date Paid or Date Due?

[coljediv]

California resident.  Am trying to figure out whether to enter my automobile license fee for the tax year in which it was paid or in the year which it was due.  My 2022 vehicle registration fee was due on 16 January 2022, and I paid it in January 2022.  My 2023 vehicle registration fee was due on 16 January 2023, but I paid it in November 2022.  Is it up to me to decide whether to credit it to 2022 or 2023, or is there a general rule about such a question, as in "date due" or "date paid?"

[Vanessa A · Accepted solution]

You can take a deduction when you receive the bill AND it is paid. You cannot claim a deduction until it is paid, and you must be legally obligated at that point to pay it.  So, you would use 2022 to claim the deduction for both registration fees because they were both due and paid.

  Here is the link to determine the amount that is deductible as you can only deduct the VLF portion of your registration fees, not the full registration fees.