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If I purchase a new car on 2021 where do I write the sales tax I paid to be deducted?

 
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2 Replies
MarilynG
Expert Alumni

If I purchase a new car on 2021 where do I write the sales tax I paid to be deducted?

Federal>Deductions and Credits>Estimates and Other Taxes Paid> Sales Tax.

 

You will be asked if you paid sales tax on a major purchase, and you will be able to enter the sales tax you paid for your new vehicle. 

 

Sales tax is an itemized deduction.  If your state has a state income tax, you have to choose between using the deduction for your state tax paid OR the sales tax deduction, whichever is higher.  TurboTax will suggest one or the other as you prepare your return.

 

Here's more info on How to Enter Sales Taxes

 

 

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**Mark the post that answers your question by clicking on "Mark as Best Answer"
MarilynG
Expert Alumni

If I purchase a new car on 2021 where do I write the sales tax I paid to be deducted?

Federal>Deductions and Credits>Estimates and Other Taxes Paid> Sales Tax.

 

You will be asked if you paid sales tax on a major purchase, and you will be able to enter the sales tax you paid for your new vehicle. 

 

Sales tax is an itemized deduction.  If your state has a state income tax, you have to choose between using the deduction for your state tax paid OR the sales tax deduction, whichever is higher.  TurboTax will suggest one or the other as you prepare your return.

 

Here's more info on How to Enter Sales Taxes

 

 

**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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