I purchased a new vehicle last year. Can I deduct the amount paid for the tag registration at the time of purchase? I l live in Georgia.

[MichaelDC · Accepted solution]

No. Unfortunately, Georgia is one of those state where you're not allowed to claim car registration fees or personal property tax on the vehicle.

However, since it's a new car purchase, it's possible you can add the sales tax as part of the sales tax deduction. This may prove to be more advantageous than the reg fees.

Sales tax paid can be included in the calculation of itemized deductions.  You can include state sales tax paid or you can include state income tax, you cannot take both.

Since you had a major purchase you should see if the sales tax deduction is greater than the state income tax deduction.

You can calculate your state sales tax by saving all receipts for the year and manually adding the sales tax paid.  Or, you can use a calculation based on your income level.  If you use the calculation, you are able to add sales tax for major purchases to the calculated amount.

To enter sales tax in TurboTax:

Select Federal
Select Deductions and Credits
Select Show More at Estimates and Other Taxes Paid
Select Start at Sales Tax

Please feel free to post any additional details or questions in the comment section.