Car Personal Property Taxes in Virginia

[gtscottm]

In Virginia, we pay property taxes to our county based upon the value of the vehicle, which is clearly allowable under federal guidelines.  Why does Turbotax STILL not allow this to be entered?

[IreneS]

Where are you experiencing the problem?

[gtscottm]

On the screens where you enter Car Registration Fees/Personal Property taxes, it specifically states that Virginia car Registration fees are not deductible, but provides no place to enter the personal property taxes, which are deductible.  The following screen asks about Boats, etc..., but not cars.  You might be able to enter it as a registration fee, but that does not seem correct.  At the very least it is confusing.  This is for the Desktop tax software, not the web page.

[Texas Roger]

Even though the information on the screen excludes cars, I think that is the best place to enter it.

[IreneS]

Please see my updated answer.  Enter the expense as Personal Property Tax (in spite of the screen title)--I have reported this issue.

[desurk]

It can not be entered in easy step. You can enter it in forms view, but it shows up under registration fees rather than personal property tax. A tax preparer said on the radio that failure to claim this deduction is one of the biggest mistakes made by Virginia filers, largely because TurboTax indicates they can't claim it.

[Carpe-Diem]

This issue is still present in 2018 version of TurboTax.  If you go to Personal Property, it doesn't specifically let users know that the Virginia Vehicle Personal Property Tax is deductible and that this is where you should enter it.  There also isn't a crosswalk from the Vehicle Registration fee area telling VA residents to go to the Personal Property section to enter the "Personal Property Tax" portion of their vehicle tax bill.  Poor guidance and instructions caused me to loose almost $200 tax savings per year 2005-2013.  I had to re-file for 2014-2016 when I learned this.  Frankly I think you owe me about $1900 for failing on your "Promise" especially since the guidance is still messed up.

[mykaneilson]

Working on 2018 TurboTax and very annoying they won't fix this for VA residents!!!

[mykaneilson]

Plus... contradicting guidance from answers from two TurboTax agents... here vs. a similar question raised 2 years ago.  One agent says to enter personal property taxes (for cars/vehicles) in the car registration fees and the other says put it in the personal property tax section.  Plus guidance in Turbotax itself can be misleading and has obvious gaps for VA residents in this section.

I'm trying to figure out whether the $38 registration portion of my VA property tax bill should be included (x 4 cars) and no joy.  I'll just exclude to be safe.

[xmasbaby0]

@mykaneilson Instead of posting to a 3 year old thread, please start your own new thread with a new question.

[Carpe-Diem]

@xmasbaby I disagree.  TurboTax needs to know and needs to fix this "still".  The history of our complaining is relevant.   @mykaneilson You can't claim the $38 local registration fee--only the "Net Tax Amount" which is based on the value of the car.

[xmasbaby0]

I am trying to point out to you that posting to a three year old thread is an ineffective way to get help.

[IreneS]

I'm sorry for the confusion.  I am reporting this issue to our developers.

In Virginia:

• Personal property taxes are deductible because they are ad valorem taxes (based on value).
  
• Vehicle registration fees are not deductible because they are determined by the weight of the vehicle.
  

Personal Property Taxes paid are entered as a deduction in the Federal interview as an itemized deduction.  To enter these expenses in TurboTax, please follow these steps:

1. Click on Federal Taxes > Deductions & Credits  [In TT Home & Biz:  Personal > Deductions & Credits > I'll choose what I work on].
2. Scroll to the Cars and Other Things You Own section and click on the Start/Update box next to Personal Property Taxes.  (See Screenshot #1, below.)
3. On the next screen, Property Taxes Paid on Boats and Planes, click on the Yes box  (even though your tax was paid on a motor vehicle).  (Screenshot #2)
   
4. On the next screen Enter your Personal Property Tax and click Continue.  (Screenshot #3)
   

If you take the standard deduction instead of itemizing you will not receive a benefit from the entry.

[snoqualmie7]

Thanks for the explanation, very helpful. Still would like to see this resolved inside of TurboTax, because without this explanation, it is not readily apparent that vehicle property taxes are deductible in Virginia.

[Marty9990]

Exactly. Please fix