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deanmarch
New Member

I live in az. Bought a new car this summer. Can I claim the taxes I paid at the time of sale? And where would I enter this on fed return or state? And where?

 
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1 Reply
DS30
New Member

I live in az. Bought a new car this summer. Can I claim the taxes I paid at the time of sale? And where would I enter this on fed return or state? And where?

There are 2 separate types of fees that may be deductible on your federal income tax return; sales tax and your car registration fees. They could both be listed on your new car purchase invoice or you may need to contact your state's Department of Motor Vehicles for a breakdown of your car registration fee information.

Please note that you would only be able to claim these deductions if you itemize so if all your itemized deductions are less than your standard deduction, TurboTax will choose the larger standard deduction on your tax return.

Car Registration Fee - the total amount of your registration fee is not deductible, just the portion that the state charged you for taxes based on the value of your vehicle.

To enter your car registration fees in TurboTax Online or Desktop, please follow these steps:

  1. Once you are in your tax return, click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
  2. Next click on “Deductions & Credits”
  3. Next click on "jump to full list" or “I’ll choose what I work on”
  4. Scroll down the screen until to come to the section “Cars and other things I own”
  5. Choose "show more", then car registration fees and follow the onscreen instructions

Sales Tax Deduction - You have the choice to deduct the general sales tax for your state or 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 your sales taxes in TurboTax Online or Desktop, please follow these steps:

  1. Once you are in your tax return, click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
  2. Next click on “Deductions & Credits”
  3. Next click on "jump to full list" or “I’ll choose what I work on”
  4. Scroll down the screen until to come to the section “Estimates and Other Taxes Paid ”
  5. Choose "show more", then Sales Tax (start/update/revisit)
  6. Choose - continue to sales tax and have the program guide you (this will help the TurboTax program determine if taking a general sales tax or individual sales tax is better for your situation (screenshot #1)

Arizona does not specifically have a state tax adjustment for the sale's taxes and deductible registration fees on it's states tax return. TurboTax will guide you in entering your state tax information




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