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Can you add a car purchase on your income tax

 
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5 Replies
RyanH2
New Member

Can you add a car purchase on your income tax

Yes, you may be able to claim the sales tax deduction for purchasing a new vehicle and paying the taxes on it. To enter the tax on your vehicle and other items follow the directions below.

When filing your return you can choose to either deduct your income tax or sales tax. Most people deduct income tax, but in the case that you made several large purchases you will probably receive a larger refund by claiming sales tax.

To enter the sales tax deduction:

1. Go to the search bar in the top right and enter "Sales Tax Deduction"

2. Select "Jump to Sales Tax Deduction"

3. Select "Try Sales Tax Deduction Anyways"

4. When asked "How do you want to enter your sales tax info?", select "EasyGuide"

5. Enter your location info and answer the questions

6. Enter your tax rate and continue (Select this link for your state sales tax rate)

7. When asked, "Did you buy any major items?", answer "Yes"

8. You will come to a page titled "Enter Major Purchases". Enter your vehicle here, or add anything else that you've paid sales tax on. Select the Type drop-down box for a list of options.

https://ttlc.intuit.com/replies/3302003



Can you add a car purchase on your income tax

Can you add a new car purchase to your tax filing paperwork?

MayaD
Expert Alumni

Can you add a car purchase on your income tax

Yes, you may be able to claim the Sales Tax paid.

You can choose to deduct the State Income Tax or the Sales tax.

Most Taxpayers who itemize, get higher tax break by deducting the state and income tax.  However, if you:

  • Are residents of Alaska, Florida, Nevada, South Dakota, Texas, Washington, or Wyoming
  • Made a major purchase and paid a lot of sales tax.
  • Made frequent or substantial purchases in a state with high sales taxes.

then the Sales Tax might be your best option.

 

To claim the sales Tax:

  1. Log in to your account.
  2. Go to Federal Taxes.
  3. Go to Deduction and Credits.
  4. Scroll down to Estimates and Other Taxes Paid and click show more.
  5. Scroll down to Sales Tax and click revisit.

If you already filed your return, you need to amend to add the sales tax.

Here's how you can amend your return:

  1. Log in to your account
  2. Scroll down to Your tax return & documents.
  3. Select 2019 and then  Amend (change) return.
  4. Select Amend using TurboTax Online.Carefully follow the instructions. Don't worry if your refund changes to $0. This is normal on amended returns.
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Can you add a car purchase on your income tax

If I amend my 2018 taxes to add sales tax of new car, what type of changes does that make to my 2018 return? is it a good thing or no? my filing status for 2018 was HOH and my return was 2,053.00 and taxable income was 26,430.00 after deductions and the sales tax on the paperwork 922.00 and 50 for county taxes. please can some guide me a bit?I really appreciate it. thanks in advance.

DianeC958
Expert Alumni

Can you add a car purchase on your income tax

It may not make any change to your return.  If you took the Standard Deduction for 2018, which was $18,000 filing as Head of Household, and you did not have enough to Itemize the amount you paid for sales tax is included in the $18,000 deduction you received.  

 

If you did Itemize your deductions and you deducted the amount of State Income Tax you paid, you can only deduct State Income Tax or Sales Tax you paid, not both.  You would need to see which one is greater.  

 

If you want to include this information you will need to file an amended return for 2018, print, sign, date and mail it to the IRS and you state according to the instructions that print out with the return.

 

How to Amend Your Prior Years Tax Returns Using TurboTax

 

@surviving_2020

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