We purchased a used vehicle in 2024. We got a loan for it at the dealership. Will there be anything I can use on my taxes from purchasing this vehicle?
If the car is for your personal use (not business) then the only thing might be sales tax or in some states, car registration fees. Sales tax is an itemized deduction. If you do not have enough other itemized deductions like mortgage interest, medical expenses, charity donations etc. to exceed your standard deduction, sales tax will have no effect on your tax due or refund.
SALES TAX
You can enter the sales tax you paid for the car you purchased in 2024 by going to 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. Unless you have enough other itemized deductions to exceed your standard deduction the sales tax will have no effect on your tax due or refund.
“Major purchases” that you can enter for the sales tax deduction include:
Motor Vehicles (cars, trucks, motor homes, RV’s, sport utility vehicles and off-road vehicles
Aircraft or boats
Mobile homes
Manufactured housing
Building materials for major home improvements
You cannot deduct: furniture, jewelry, home electronics such as TV’s or computers