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easymgmt
New Member

I am a W-2 employee since Jul-16 and finished college in May-2016.I purchased a new car, can I deduct sales tax ($2,034)on it?

no dependents at all,  no house of my own, my income is $27,927.00
If the answer is I can deduct it thorough Itemized Deductions, is this convenient for me? If so, how to do it please. I already digged into Deductions and Credits but couldn't found it.
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Accepted Solutions
Fern
New Member

I am a W-2 employee since Jul-16 and finished college in May-2016.I purchased a new car, can I deduct sales tax ($2,034)on it?

Sales tax on a major purchase, like a car, can be included in the calculation of itemized deductions. However, if this is the only itemized deduction that you have, you will not reach the threshold where it will reduce your taxes.

Itemized deductions are used to lower your taxable income only after the total of your itemized deductions is more than the standard deduction.

The standard deduction is the amount the IRS allows everyone to deduct from their income, so that everyone has at least some income that is not subject to income tax.  The amount of the standard deduction depends on what filing status you use.

For 2016 the standard deduction amounts are:
Single 6,300 + 1,550 for 65 and over
HOH 9,300 + 1,550 for 65 and over
Joint 12,600 + 1,250 for each 65 and over
Married filing Separate 6,300 + 1,250 for 65 and over


What this means is, for example, a single person must have more than $6,300 in itemized deductions before they will see a reduction in their taxes for using itemized deductions.

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1 Reply
Fern
New Member

I am a W-2 employee since Jul-16 and finished college in May-2016.I purchased a new car, can I deduct sales tax ($2,034)on it?

Sales tax on a major purchase, like a car, can be included in the calculation of itemized deductions. However, if this is the only itemized deduction that you have, you will not reach the threshold where it will reduce your taxes.

Itemized deductions are used to lower your taxable income only after the total of your itemized deductions is more than the standard deduction.

The standard deduction is the amount the IRS allows everyone to deduct from their income, so that everyone has at least some income that is not subject to income tax.  The amount of the standard deduction depends on what filing status you use.

For 2016 the standard deduction amounts are:
Single 6,300 + 1,550 for 65 and over
HOH 9,300 + 1,550 for 65 and over
Joint 12,600 + 1,250 for each 65 and over
Married filing Separate 6,300 + 1,250 for 65 and over


What this means is, for example, a single person must have more than $6,300 in itemized deductions before they will see a reduction in their taxes for using itemized deductions.

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