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