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Level 1
February 8, 2022
Question

Standard Deduction

  • February 8, 2022
  • 2 replies
  • 19 views

If taking the Standard Deduction can i also use 2021 car purchase taxes

    2 replies

    Level 15
    February 8, 2022

    No. Sales taxes paid on a car purchase can only be deducted when using itemized deductions and only then when you deduct sales taxes instead of state and local income tax.

    VolvoGirl
    Level 15
    February 8, 2022

    No that is only if you itemize.  

    If you itemize your deductions you can either take the state and local SALES TAX deduction OR the state and local INCOME TAX deduction whichever is greater. There are a couple items like car sales tax you can add to the general sales tax table.  That is mainly for people who live in a state without a state income tax.