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New Member
posted Jan 21, 2021 9:17:39 AM

Does a 2021 Toyota Corolla Hybrid offer any tax credits for energy-efficient vehicles?

Purchased Nov 2020, brand new.  Was hoping it qualified for some sort of tax incentive/credit.

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2 Replies
Level 15
Jan 21, 2021 9:20:02 AM

No, that Toyota model is not eligible for the tax credit.

Go to this website for eligible vehicles - https://www.fueleconomy.gov/feg/taxevb.shtml

Level 15
Jan 21, 2021 9:20:35 AM

Maybe sales tax if you are itemizing deductions

 

 

SALES TAX

You can enter the sales tax you paid for the car you purchased in 2020 by going to Federal>Deductions and Credits>Estimates and Other Taxes Paid> Sales Tax.  You will be asked if you paid sales tax on a major purchase, and you will be able to enter the sales tax you paid for your new vehicle.

Sales tax is an itemized deduction.  If your state has a state income tax, you have to choose between using the deduction for your state tax paid OR the sales tax deduction, whichever is higher.  The TT process will suggest one or the other as you prepare your return.

“Major purchases” that you can enter for the sales tax deduction include:

Motor Vehicles (cars, trucks, motor homes, RV’s, sport utility vehicles and off-road vehicles

Aircraft or boats

Mobile homes

Manufactured housing

Building materials for major home improvements

You cannot deduct: furniture, jewelry, home electronics such as TV’s or computers

https://ttlc.intuit.com/questions/1901222-which-deduction-should-i-choose-sales-tax-or-income-tax

https://ttlc.intuit.com/questions/2566624-how-much-sales-tax-did-i-pay-last-year

https://ttlc.intuit.com/questions/3148443-how-do-you-define-major-purchase-or-major-item-for-the-sales-tax-deduction

https://ttlc.intuit.com/questions/1900791-how-do-i-find-my-local-sales-tax

https://ttlc.intuit.com/questions/2566624-how-much-sales-tax-did-i-pay-last-year