I paid $971.00 on use Tax for a used car. Is that deductable?

[gorjet]

The car is a 2002 Buick LaSabre.  We paid $12000.

We paid a fee of $971 .

In California we have to pay a use tax that's the same as the sales tax which is .08%, at least $960.00   of that was use tax.  Can we deduct that?

[MollsBBU · Accepted solution]

Sales/Use tax paid may be deductible, but this is usually only a benefit in states that do not have a state income tax as only the higher of the two is deductible. TurboTax will calculate which amount is most beneficial for you to deduct.

States that don't levy an income tax: Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming

To enter sales tax in to TurboTax:

1. Click the Federal Taxes tab at the top (or the Personal tab if using Home & Business)
2. Then, Deductions & Credits
3. Scroll down to the "Estimates and Other Taxes Paid section", click Show more
4. Next to "Sales Tax" click Start or Update
5. Follow the interview screens to input this information

Also, having purchased your car in California, you may be able to deduct certain taxes for the fees you pay for your vehicle registration or vehicle license. Please note these must be based on your vehicle's value.

California is on the list of states that charge a tax based on vehicle value. To browse the full list of states that charge deductible vehicle fees, please see  this post .

To enter Car Registration Fees/Personal Property Taxes:

1. Click the Federal Taxes tab at the top (or the Personal tab if using Home & Business)
2. Then, Deductions & Credits
3. In the "Cars and Other Things You Own" section, click Show more
4. Next to "Car registration fees", click Start or Revisit/Update
5. Then, follow the interview screens from there

[gorjet]

I will now answer my own question.  Turbo tax finally let me re-do the tax on the car.  At first It said no.  But it accepted it now.  I can deduct a whopping amount of $9.60 of the $971.00!