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I bought a new vehicle and paid taxes can I claim this?

Tax was sales tax on the purchase $3375.00
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I bought a new vehicle and paid taxes can I claim this?

SALES TAX

You can enter the sales tax you paid for the car you purchased in 2020 by going to Federal>Deductions and Credits>Estimates and Other Taxes Paid> Sales Tax.  You will be asked if you paid sales tax on a major purchase, and you will be able to enter the sales tax you paid for your new vehicle.

Sales tax is an itemized deduction.  If your state has a state income tax, you have to choose between using the deduction for your state tax paid OR the sales tax deduction, whichever is higher.  The TT process will suggest one or the other as you prepare your return.

“Major purchases” that you can enter for the sales tax deduction include:

Motor Vehicles (cars, trucks, motor homes, RV’s, sport utility vehicles and off-road vehicles

Aircraft or boats

Mobile homes

Manufactured housing

Building materials for major home improvements

You cannot deduct: furniture, jewelry, home electronics such as TV’s or computers

https://ttlc.intuit.com/questions/1901222-which-deduction-should-i-choose-sales-tax-or-income-tax

https://ttlc.intuit.com/questions/2566624-how-much-sales-tax-did-i-pay-last-year

https://ttlc.intuit.com/questions/3148443-how-do-you-define-major-purchase-or-major-item-for-the-sal...

https://ttlc.intuit.com/questions/1900791-how-do-i-find-my-local-sales-tax

https://ttlc.intuit.com/questions/2566624-how-much-sales-tax-did-i-pay-last-year

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
BillM223
Expert Alumni

I bought a new vehicle and paid taxes can I claim this?

Yes, you are permitted to add sales tax on large vehicle purchases in Schedule A, Itemized Deductions. Ordinarily, you would enter the tax rate for your state and city in the Itemized Deductions interview. During that interview, you should see the opportunity to add tax paid on large purchases such as a car or boat, if you are deducting sales tax and not state income tax.

 

Note that this tax is part of SALT (State And Local Taxes) which are capped at $10,000. so you may find that even if you add it, it may make little or no difference.

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