It depends.
If these personal property taxes are a separate
state/local tax imposed annually on the value of your car in addition to your
car registration fee or this is another type of personal vehicle (ie: RV,
boat), you will enter these in personal property taxes section
To enter your personal property taxes in
TurboTax Online or Desktop, please follow these steps:
- Once you are in your tax
return, click on the “Federal Taxes” tab ("Personal" tab in
TurboTax Home & Business)
- Next click on “Deductions and
credits”
- Next click on "jump to
full list" or “I’ll choose what I work on”
- Scroll down the screen until
to come to the section “Cars and Other Things You Own”
- Choose "show more",
then Personal Property Taxes and follow the onscreen instructions
If you pay these taxes when you register your car, you
will enter them under the car registration fee section. The total amount
of your registration fee is not deductible, just the portion that the state
charged you for taxes based on the value of your vehicle. This does not include
the yearly tag fees but only the Ad Valorem Tax which is a deductible tax added
to the tag fee. Please check this link to see if Is
your Car Registration Deductible?
For Example, your
annual car registration fee is based on a formula that charges $2 per 100
pounds of vehicle weight, $1 per $1,000 of value, a flat $10 for license plate
tabs, and $35 in other taxes and charges. If you had a 4,200-pound vehicle with
a value estimated by the state at $25,000, then your fee would be $154 ($84
plus $25 plus $10 plus $35). Of that, only $25 would be an itemized deduction,
because that's the only portion based on the actual value of the vehicle.
To enter your car registration fees in TurboTax
Online (for TurboTax Online sign-in, click Here) or Desktop, please follow these
steps:
- Once you are in your tax
return, click on the “Federal Taxes” tab ("Personal" tab in
TurboTax Home & Business)
- Next click on “Deductions
& Credits”
- Next click on "jump to
full list" or “I’ll choose what I work on” (You may get the car
registration fee screen here - see screenshot)
- Scroll down the screen until
to come to the section “Cars and other things I own”
- Choose "show more",
then car registration fees and follow the onscreen instructions Please
note that you would only be able to claim these deductions if you itemize
so if this is your only itemized deductions, you will want to just take
the standard deduction.
