Yes, you can deduct sales tax if you itemize your deductions and are claiming a state sales tax deduction (as opposed to a state income tax deduction).
As for the interest on a personal auto loan, you will not be able to claim a deduction for this interest. The IRS does not allow an interest deduction on a personal loan for a personal use vehicle.
Please
note that you would only be able to claim this sales tax deduction if you itemize so if
this is your only itemized deductions, you will want to just take the
standard deduction.
Sales Tax Deduction - You have the choice to
deduct the general sales tax for your state (as opposed to state income taxes)
and include the sales tax for all your major purchases. TurboTax will guide you
in determining which of these provides you will the larger deduction.
To enter this
transaction in TurboTax, log into your tax return (for TurboTax Online sign-in,
click Here) and click on "Take
me to my return") type "Sales Tax Deduction" in the search bar
then select "jump to Sales Tax Deduction". TurboTax will guide you in
entering this information.
Alternatively, to enter your sales taxes and major purchases in
TurboTax Online or Desktop, please follow these steps:
- Once you are in your tax
return, click on the “Federal Taxes” tab ("Personal" tab in
TurboTax Home & Business)
- Next click on “Deductions
& Credits”
- Next click on "jump to
full list" or “I’ll choose what I work on”
- Scroll down the screen until
to come to the section “Estimates and Other Taxes Paid ”
- Choose "show more",
then Sales Tax (start/update/revisit)
- Choose - continue to sales
tax and choose "Easy Guide"
- Enter your state sales tax
information (If your state sales tax information is already entered you
will need to edit it to enter your major purchases information.)
- On the screen that says
Major Purchase - select "yes"
- Enter your vehicle
information and sales tax here on the next screen.
