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That depends.
You wanted to know how the sales tax on the purchase of a vehicle affects your tax return.
Your estimated sales tax for the year is calculated based on your local sales tax rate and your income. If you make a major purchase, such as your new vehicle, that is added in. This is a major break for the taxpayers who live in a state that has no state income tax.
You can deduct either the state income taxes you paid or the calculated sales tax - but you cannot deduct both. Turbo Tax will always deduct the tax amount that gives you the larger deduction.
If you live in one of the states that has a state income tax, then, generally speaking, your state income taxes paid are going to be higher than your calculated sales tax deduction.
You can go to the link below and use the IRS Sales Tax Calculator.
https://www.irs.gov/individuals/sales-tax-deduction-calculator
If you claim the standard deduction (Line 40 of Form 1040), then you will not see a tax break from the sales tax paid on the purchase of your vehicle.
You can look at Line 40 by Previewing your return:
Log in to your Turbo Tax return. Once you are into your return, you should:
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