What section do I add the taxes from the purchase of a new vehicle?

[ddaven12 · Accepted solution]

Please follow the steps below to  add the sales tax paid for the new vehicle in TurboTax Online:

• Go to Federal Taxes

• Then go to Deductions & Credits if given the option select "Jump to full list"

• Scroll down the page to "Estimates and Other Taxes Paid".

• Click Start next to Sales Tax and continue through the interview.

• When asked "How do you want to enter your sales tax info" select the "EasyGuide".

• Next enter the State where you lived and the dates, then continue.

• You will next see a question asking you to enter the Sales tax rate paid while living in your state.

• Finally you will see "Major Purchases", you will then be able to enter the sales tax paid for the vehicle.

[Carl]

Under the Deductions & Credits tab there's a section for "Estimates and Other Taxes Paid". In that section is a sub-section for sales tax. Do be aware however that there is a limit on your federal return for SALT (State & Local Taxes) of $10K. But if you have more than $10K enter them all anyway because they can probably be used on your state return, if your state taxes personal income.

[Hal_Al]

Some states don't have income taxes to deduct, so the IRS allows you to deduct either sales taxes OR state & local income taxes (but not both). For residents of most states, it's usually best to deduct income taxes, except when you have a large purchase subject to sales tax, like you.