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Are you itemizing other deductions like mortgage interest and property taxes, charity donations, or medical expenses? Unless you are itemizing and enter enough itemized deductions to exceed your standard deduction, entering your car registration will have no effect on your tax due or refund.
Your itemized deductions have to be more than your standard deduction before you will see a change in your tax owed or tax refund. The deductions you enter do not necessarily count “dollar for dollar;” many of them are subject to meeting tough thresholds—medical expenses, for example, must meet a threshold that is pretty hard to reach. (Only the amount that is MORE than 7.5% of your AGI counts) The software program uses all the IRS rules that apply to the expenses you enter, and it tells you if you have enough to use your itemized deductions or if using the standard deduction is more advantageous for you. Under the tax laws that have been in effect since 2018, some deductions have been capped—there is a $10,000 limit to the itemized deductions for state, local, property and sales taxes.
The standard deduction makes some of your income “tax free.” It is not a refund. You will see your standard or itemized deduction amount on line 12 of your 2024 Form 1040.
2024 STANDARD DEDUCTION AMOUNTS
SINGLE $14,600 (65 or older/legally blind + $1950)
MARRIED FILING SEPARATELY $14,600 (65 or older/legally blind + $1550)
MARRIED FILING JOINTLY $29,200 (65 or older/legally blind + $1550)
HEAD OF HOUSEHOLD $21,900 (65 or older/legally blind + $1950)
If you want to enter fees for car registration:
Go to Federal>Deductions and Credits>Cars and Other Things You Own>Car Registration Fees
If you are not a business, ownership of a car is not reported on your tax return. In some states, you can deduct a portion of car registration fees or personal property taxes based on the value of the car. Just enter the taxes paid, you don't need to identify which car.
If you own a business and the car is used for business, you need to report that the previous car was disposed of (sold, donated, whatever) and you report the addition of the new car as a business asset.
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