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jtactikos
New Member

If I paid vehicle registration and road tax fees in a foreign country should I report that?

 
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MaxA1
Expert Alumni
Intuit Approved! This answer has been verified for accuracy by an Intuit expert employee

If I paid vehicle registration and road tax fees in a foreign country should I report that?

If you are itemizing your deductions rather than taking the Standard Deduction, you may be able to deduct some of your vehicle registration fees.  Only the portion of the fee that is charged based on the vehicles value is deductible.  For more info on this topic, see the following link; Is Your Car Registration Deductible?

 

Foreign road tax fees are not deductible.  U.S. taxpayers can deduct foreign income, war profits, and excess profits taxes paid to foreign countries or U.S. possessions on Schedule A (Form 1040) to reduce their taxable income. These must be foreign taxes paid on income, not for personal property or services. Alternatively, taxpayers can claim a dollar-for-dollar Foreign Tax Credit, which is generally more beneficial than a deduction.   For more info on this topic, see the following link; Claiming the Foreign Tax Credit with Form 1116

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1 Reply
MaxA1
Expert Alumni
Intuit Approved! This answer has been verified for accuracy by an Intuit expert employee

If I paid vehicle registration and road tax fees in a foreign country should I report that?

If you are itemizing your deductions rather than taking the Standard Deduction, you may be able to deduct some of your vehicle registration fees.  Only the portion of the fee that is charged based on the vehicles value is deductible.  For more info on this topic, see the following link; Is Your Car Registration Deductible?

 

Foreign road tax fees are not deductible.  U.S. taxpayers can deduct foreign income, war profits, and excess profits taxes paid to foreign countries or U.S. possessions on Schedule A (Form 1040) to reduce their taxable income. These must be foreign taxes paid on income, not for personal property or services. Alternatively, taxpayers can claim a dollar-for-dollar Foreign Tax Credit, which is generally more beneficial than a deduction.   For more info on this topic, see the following link; Claiming the Foreign Tax Credit with Form 1116

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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