Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
Mom2be1
New Member

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

 
1 Best answer

Accepted Solutions
ddaven12
New Member

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

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.


View solution in original post

3 Replies
ddaven12
New Member

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

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
Level 15

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

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
Level 15

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

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.

Dynamic AdsDynamic Ads
Privacy Settings
v