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user339340
New Member

I purchased a new vehicle in 2019 . Do i get a tax break for the taxes paid? 0r a maximum deduction amount?

 
2 Replies
DoninGA
Level 15

I purchased a new vehicle in 2019 . Do i get a tax break for the taxes paid? 0r a maximum deduction amount?

You can add the Sales Taxes for a major purchase

 

To enter your sales taxes

  • Click on Federal Taxes (Personal using Home and Business)
  • Click on Deductions and Credits
  • Click on I'll choose what I work on (if shown)
  • Scroll down to Estimates and Other Taxes Paid
  • On Sales Taxes, click the start or update button

Or enter sales tax in the Search box located in the upper right of the program screen. Click on Jump to sales tax

Hal_Al
Level 15

I purchased a new vehicle in 2019 . Do i get a tax break for the taxes paid? 0r a maximum deduction amount?

Probably not.

The purchase of a personal vehicle is not usually a tax reportable event. However, You are allowed to deduct state & local income taxes OR sales tax; but not both. This provision was added primarily to allow a deduction for people in states without income tax. Sometimes, with a big purchase (like a car), you may be better off deducting sales tax even if your state has an income tax. Enter both, under deductions, and TT will calculate the best option. If you don't have all your receipts (and hardly anybody does), you are allowed to use tables (built into TT from IRS Pub 600) based on income & exemptions, You can then add major purchase sales tax to the table amounts. Neither is deductible if you use the standard deduction instead of itemizing.  The standard deduction was doubled (to $12,200, 24,400 married) starting in 2018; so very few people itemize deductions any more

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