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kldaudet
New Member

I paid my vehicle registration tabs late - 2020 tabs paid on 1/1/21. Will that apply to my 2020 taxes or 2021 taxes?

 
2 Replies
DavidD66
Employee Tax Expert

I paid my vehicle registration tabs late - 2020 tabs paid on 1/1/21. Will that apply to my 2020 taxes or 2021 taxes?

Since you paid it in 2021 it will apply to tax year 2021.  As an individual, you are on "Cash" (vs accrual) basis.

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macuser_22
Level 15

I paid my vehicle registration tabs late - 2020 tabs paid on 1/1/21. Will that apply to my 2020 taxes or 2021 taxes?

2021 but realize that only that part of registration that is a property tax bases on the value of the vehicle is and itemized deduction that will probably be of no benefit unless you otherwise itemize.

 

For 2018 - 2020 many taxpayers that itemized in the past will find that they can no longer itemize because the standard deduction has doubled so all of their itemized deduction s no longer exceed the standard deduction.

Only if all itemized deductions exceed the standard deduction will it be of benefit.

Not all itemized deductions count the full amount. Medical expenses are reduced by 7.5% of AGI so if your AGI is $30,000, for example, then only medical expenses more than $2,250 would be an itemized deduction.

The 2018 tax law also caps the total of Sales tax OR State and local income tax, Property (real estate and personal property) taxes at $10,000.

Mortgage interest on loans after Dec 16, 2017 may be limited.

The Mortgage must be secured by the property to qualify.

Interest on home equity loans and lines of credit are deductible only if the borrowed funds are used to buy, build, or substantially improve the taxpayer’s home that secures the loan.

You can check the actual amount of itemized deductions by using the Search Topics for "itemized deductions, choosing" (under "My Account, Tools" in the online versions). Click on "Change my deduction". That will display the actual amount of itemized deductions vs. the standard deduction. (Be sure to uncheck "Change my deduction" after checking it so you do not lock in the wrong deduction.


2020 standard deductions

$12,400 Single
$18,650 Head of Household
$24,800 Married Jointly

Add an additional $1,300 for over age 65 or blind
This amount increases to $1,650 if the taxpayer is also unmarried.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

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