AZ Auto Registration fees

[booshebach1]

Are AZ auto regiatration fees (based on value of vehicles) deductable on AZ return if you don't itemize?

I know they are not on federal with standartd deduction but I thought they were on state level.

[AnnetteB6]

After reviewing the Arizona Individual Income Tax Instruction Booklet and the itemized deductions page, there does not seem to be any deduction allowed for auto registration fees even if using itemized deductions on your state return.

If you would like to take a closer look, use the following link to download the instruction booklet and take a look at the itemized deduction form on page 31 of the PDF document.

Arizona Instruction Booklet

[booshebach1]

Thanks for providing reference.

[booshebach1]

Another question regarding auto registration fees on federal return. I entered the fees in the fields in interview and I took the standard deduction in 2021 and 2022 but on the deductions and credits summary page in TT it shows a deduction of my vehicle registration fees for 2021 but $0 for 2022. I did not itemize last year but shows a $587 deduction on 2021 taxes. Why is it not applied in 2022?  

[AbrahamT · Accepted solution]

See HERE  although you cannot take the vehicle registration fees as a deduction for federal tax purposes if you take the standard deduction, you can nethertheless claim it for the state of Arizona. Arizona does not specifically have a state tax adjustment for deductible registration fees. In that case, I would enter it on the state input as follows,When entering your state input for Arizona, when you get to this screen

 

hit yes

Enter the description and amount

The 25.00 deduction will flow seamlessly to Form 140  line 36 like this

which comes from the Other Subtractions Worksheet (140) from here

This should work well for you. Good luck!

[booshebach1]

That works. Thank you!