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nalee1964
New Member

How to deduct excise tax (car)

need to deduct car registration/excise tax
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3 Replies

How to deduct excise tax (car)

Excise taxes are not deductible on a federal tax return.

To deduct vehicle registration fees the fee must be based on the value of the vehicle.

nalee1964
New Member

How to deduct excise tax (car)

trying to find where to deduct from state tax (Indiana) which is allowed according to all information that I can find

JamesG1
Expert Alumni

How to deduct excise tax (car)

In Indiana, you may deduct the excise tax, but not the registration fee on Indiana registered vehicles.  The fees are separate on an Indiana vehicle registration.

 

 

An excise tax that is based on the value of the property, imposed on an annual basis, and imposed on personal property, such as a car, is deductible on Schedule A, Itemized Deductions. Indiana is one of the states that imposes an excise tax on vehicles.

 

The deduction is reported under Federal and Deductions & Credits.  Click the down arrow to the right of Cars and Other Things.  Click Start / Revisit to the right of Car registration fees.

 

@nalee1964 

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