VEHICLE TAX DEDUCTION

[AlBuckeye]

2019 TT gave me a deduction for vehicle ad valorem tax paid that was in addition to standard deduction amount.  2020 TT does not.  Anyone know why?

[DoninGA]

On a 2019 federal tax return there was no where to enter personal property taxes paid other than as an itemized deduction on Schedule A.

[AlBuckeye]

I am not referring to personal property tax but rather ad valorem tax on the vehicles.  In 2019 Turbo Tax I got a deduction for the ad valorem tax that was in addition to standard deductions.  In 2020 Turbo Tax I enter the information exactly the same for the ad valorem tax as I did in 2019, however the deduction was included in the standard deduction calculation rather than a separate item which increased my deduction amount.

[AlBuckeye]

It seems to me this is a question for the Turbo Tax team as it has to do with the software.  So TT Team if you are monitoring please reply.

[Cynthiad66]

Personal property tax is also called an ad valorem tax. Individuals can deduct personal property taxes paid during the year as an itemized deduction on Schedule A of their federal tax returns.

To get the deduction, enter it under car registration fees by doing the following:

1. Log in to your account in TurboTax online program 
2. Select Take me to my return
3. At the right upper corner, type in car registration fees and Enter
4. Select Jump to car registration fees
5. On screen, Did you pay any car registration fees in 2020? Answer Yes  
6. Enter your vehicle information 

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.

Below is a list of states that charge a tax based on the vehicle’s value:

• Alabama
• Arizona
• Arkansas
• California
• Colorado
• Georgia
• Iowa
• Indiana
• Kentucky
• Louisiana
• Massachusetts
• Michigan
• Minnesota
• Mississippi
• Missouri
• Montana
• Nebraska
• Nevada
• New Hampshire
• South Carolina
• Washington
• Wyoming

-If your vehicle is registered in a state that’s not listed, then your fees are not deductible.