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New Member
posted Jun 6, 2019 3:08:47 AM

Where is car tax deduction located on Turbo Tax? ITS NOT under property taxes or registration fees. Connecticut.

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1 Best answer
Level 7
Jun 6, 2019 3:08:48 AM

While CT does have a credit for property taxes paid on a primary residence, motor vehicle, or both -  the law has changed for 2017 and 2018 (see Connecticut Enacts Budget Legislation)

The credit is now limited to Connecticut residents who paid qualifying property tax on their residence and/or motor vehicle AND one or more of the following statements apply:
  • You or your spouse is 65 years of age or older by the end of the taxable year.  
  • You claim one or more dependents on your federal tax return. 
The maximum property tax credit allowed is $200 per return regardless of filing status. This credit can be used to offset only your 2017 income tax. You may not carry this credit forward and it is not refundable.  See Page 19 of 2017 Form CT-1040

If you aren’t seeing the credit on your screen, then there could be two issues:

(1)  The CT property tax credit is limited to $200 per return.  Since this credit applies to both residences and motor vehicles, if you have already reached the maximum CT property tax due to your residence, then the motor vehicle section will not appear.  

(2)  There have been some changes to this credit that now more strictly limit who can claim the credit (see the information above).  So, if you don’t meet those criteria, then you also won’t see the credit.  There were also some changes to the phase-out threshold so less people qualify due to their income levels or qualify at a lower percentage.

To enter this credit in TurboTax:
  • Click Start next to the Connecticut State return
  • Proceed with the opening screens and income section
  • Click Done with Income
  • Click Start next to Property Tax Credit on the next set of items
  • Click Continue after entering you Primary Residence Property Tax Information (if applicable)
  • Click Yes to Taxes Paid on Motor Vehicles (if you don’t see it, see notes below)
  • Enter required information 
However, you may also be able to claim a federal deduction for personal property tax paid for this item since this tax applies to personal property you own, is based on its value and is charged on an annual basis.  But, in order to claim the deduction, you will have to be itemizing your deductions to get any tax benefit.  

You can find this section in TurboTax under the Federal section -> choose Deductions and Credits -> scroll down to Cars and Other Things you Own -> select Personal Property Taxes and proceed with the entries.

3 Replies
Level 7
Jun 6, 2019 3:08:48 AM

While CT does have a credit for property taxes paid on a primary residence, motor vehicle, or both -  the law has changed for 2017 and 2018 (see Connecticut Enacts Budget Legislation)

The credit is now limited to Connecticut residents who paid qualifying property tax on their residence and/or motor vehicle AND one or more of the following statements apply:
  • You or your spouse is 65 years of age or older by the end of the taxable year.  
  • You claim one or more dependents on your federal tax return. 
The maximum property tax credit allowed is $200 per return regardless of filing status. This credit can be used to offset only your 2017 income tax. You may not carry this credit forward and it is not refundable.  See Page 19 of 2017 Form CT-1040

If you aren’t seeing the credit on your screen, then there could be two issues:

(1)  The CT property tax credit is limited to $200 per return.  Since this credit applies to both residences and motor vehicles, if you have already reached the maximum CT property tax due to your residence, then the motor vehicle section will not appear.  

(2)  There have been some changes to this credit that now more strictly limit who can claim the credit (see the information above).  So, if you don’t meet those criteria, then you also won’t see the credit.  There were also some changes to the phase-out threshold so less people qualify due to their income levels or qualify at a lower percentage.

To enter this credit in TurboTax:
  • Click Start next to the Connecticut State return
  • Proceed with the opening screens and income section
  • Click Done with Income
  • Click Start next to Property Tax Credit on the next set of items
  • Click Continue after entering you Primary Residence Property Tax Information (if applicable)
  • Click Yes to Taxes Paid on Motor Vehicles (if you don’t see it, see notes below)
  • Enter required information 
However, you may also be able to claim a federal deduction for personal property tax paid for this item since this tax applies to personal property you own, is based on its value and is charged on an annual basis.  But, in order to claim the deduction, you will have to be itemizing your deductions to get any tax benefit.  

You can find this section in TurboTax under the Federal section -> choose Deductions and Credits -> scroll down to Cars and Other Things you Own -> select Personal Property Taxes and proceed with the entries.

Returning Member
Mar 7, 2022 12:41:45 PM

dont know where to enter my new car title tax paid.  i need to go to Sales tax and Income tax Screen. how do I do this?

Expert Alumni
Mar 7, 2022 4:38:37 PM

The IRS has a standard sales tax deduction based on your income. You can add additional sales tax to this standard amount if you made a large purchase, such as a car @HilariaMoya.

 

Here's how to do it:

  1. Type sales tax in Search in the top right
  2. Select Jump to sales tax
  3. On Let's Compare Your Sales Tax and Income Tax tap Try Sales Tax Deduction Anyway
  4. Tap EasyGuide on How do you want to enter your sales tax info?
  5. Fill out the screens. Say Yes on Major Purchases
  6. On Enter Major Purchases, enter your vehicle info