I lived in 1 city the entire year & pay no state income tax. I bought a car at a location that has a higher sales tax. How do I get the full amount of sales tax deducted?
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buckner-38
New Member

I lived in 1 city the entire year & pay no state income tax. I bought a car at a location that has a higher sales tax. How do I get the full amount of sales tax deducted?

TurboTax asked the dates I lived at a location.  I lived at the same location the entire year and so put in the state+local combined tax rate.  However, I purchased a car in a different city which has a much higher tax rate (1.4 percentage points higher).  However, it won't let me take credit for all of the sales tax I paid, unless I lie and say I lived in that city for a day, and I absolutely won't lie to the program.

3 Replies
Rainman12
Level 9

I lived in 1 city the entire year & pay no state income tax. I bought a car at a location that has a higher sales tax. How do I get the full amount of sales tax deducted?

TT is correctly limiting your deduction; You can't take the full amount. IRS on why you get no higher deduction: https://www.irs.gov/uac/sales-tax-deduction-option
"Taxpayers also may add to the table amount any sales taxes paid on:
A motor vehicle, but only up to the amount of tax paid at the general sales tax rate ...
For example, the State of Washington has a motor vehicle sales tax of 0.3 percent in addition to the state and local sales tax. A Washington state resident who purchased a new car could add the tax paid at the general sales tax rate to the table amount, but not the 0.3 percent motor vehicle sales tax paid."
buckner-38
New Member

I lived in 1 city the entire year & pay no state income tax. I bought a car at a location that has a higher sales tax. How do I get the full amount of sales tax deducted?

TurboTax won't even let me input the General sales tax for the locality the purchase was made.
Rainman12
Level 9

I lived in 1 city the entire year & pay no state income tax. I bought a car at a location that has a higher sales tax. How do I get the full amount of sales tax deducted?

You are limited to the rate where you live. You should treat the purchase made at a higher rate as if it was at the general rate where you live. Don't try to input any higher rate ...
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