Excise taxes are not a deductible expense; therefore, you will not find a section in the software to enter the information. Unless, you are referring to a payment for car truck, or RV registration and licensing or a motor vehicle tax. Those fees may be deductible as a personal property tax if it is imposed annually and assessed in proportion to the value of the car. It depends on the state you live in, and you would have to itemize deductions in order to claim them.
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For more information on excise tax, see the FAQ below
Generally, excise taxes like fees paid on the purchase of gasoline are not deductible.
However state and local taxes imposed on personal property are deductible if three conditions are met – the tax must be:
- based on the value of the property,
- imposed on an annual basis, and
- imposed on personal property (a car is considered personal property).
Payment for car, truck, or RV registration and licensing or a motor vehicle tax may be deductible as a personal property tax if it is imposed annually and assessed in proportion to the value of the car.
Some states refer to their vehicle registration fee as an "excise" tax. If it meets the three conditions above, it would be deductible.
Personal Property Taxes and TurboTax
If your excise tax qualifies as a personal property tax, follow these steps to jump directly to the entry screen for personal property taxes.
- Open your return in TurboTax.
(To do this, sign in to TurboTax and click the orange Take me to my return button.)
- Select Federal Taxes (Personal in the Home & Business edition).
- Select Deductions & Credits, and on the next screen, click I'll choose what I work on.
- In the Your tax breaks screen (Your 2016 Deductions and Credits in Home & Business), go to the Cars and Other Things You Own section.
- Click on the Start/Update button to the right of the Personal Property Taxes topic.
- Follow the prompts.
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