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If I bought a car should I still take the sales tax deduction given to me ?

 
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If I bought a car should I still take the sales tax deduction given to me ?

Sales taxes paid are entered on Schedule A as an itemized deduction.

The total of all your itemized deductions on Schedule A must be greater than the standard deduction for your filing status to have any tax benefit.

 

Standard deductions for 2023

Single - $13,850 add $1,850 if age 65 or older
Married Filing Separately - $13,850 add $1,500 if age 65 or older
Married Filing Jointly - $27,700 add $1,500 for each spouse age 65 or older
Head of Household - $20,800 add $1,850 if age 65 or older

If I bought a car should I still take the sales tax deduction given to me ?

If your state has a state income tax, you can only deduct state income tax or sales tax whichever is greater. The amount of deductions for sales or income tax and property tax is limited to $10,000 total. If the total of all your allowable deductions is greater than the standard deduction, you may get a tax benefit.

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