Wondering how i know what my deduction portion is for my car registration. I bought in 2022.

[nlessar1]

My MV sales tax was 1541.00 Can I put that as my deduction?

[xmasbaby0]

SALES TAX

You can enter the sales tax you paid for the car you purchased in 2022 by going to Federal>Deductions and Credits>Estimates and Other Taxes Paid> Sales Tax.  You will be asked if you paid sales tax on a major purchase, and you will be able to enter the sales tax you paid for your new vehicle. 

Sales tax is an itemized deduction. “Major purchases” that you can enter for the sales tax deduction include:

Motor Vehicles (cars, trucks, motor homes, RV’s, sport utility vehicles and off-road vehicles

Aircraft or boats

Mobile homes

Manufactured housing

Building materials for major home improvements

You cannot deduct: furniture, jewelry, home electronics such as TV’s or computers

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If you do not have enough other itemized deductions such as mortgage interest, etc. to exceed your standard deduction, the sales tax will have no effect.

Your itemized deductions have to be more than your standard deduction before you will see a change in your tax owed or tax refund.  The deductions you enter do not necessarily count “dollar for dollar;” many of them are subject to meeting  tough thresholds—medical expenses, for example, must meet a threshold that is pretty hard to reach. (Only the amount that is MORE than 7.5% of your AGI counts)   The software program uses all the IRS rules that apply to the expenses you enter, and it tells you if you have enough to use your itemized deductions or if using the standard deduction is more advantageous for you.  Under the new tax laws, some deductions have been capped—there is a $10,000 limit to the itemized deductions for state, local, property and sales taxes.

Your standard deduction lowers your taxable income.  It is not a refund.  You will see your standard or itemized deduction amount on line 12 of your 2022 Form 1040.

2022 STANDARD DEDUCTION AMOUNTS

SINGLE $12,950  (65 or older + $1750)

MARRIED FILING SEPARATELY $12,950  (65 or older + $1750)

MARRIED FILING JOINTLY $25,900  (65 or older + $1400 per spouse)

HEAD OF HOUSEHOLD  $19,400  (65 or older +$1750)

Legally Blind + $1750

[LindaS5247]

To deduct the value-based portion of your registration fee, you'll need to itemize your deductions using IRS Form Schedule A.

• Deductible car fees go on the line for "state and local personal property taxes."
• Note that your state might not specifically refer to the fee as a personal property tax.
• Nevertheless, if the fee is value-based and assessed on a yearly basis, the IRS considers it a deductible personal property tax.

Annual car registration fees may be deductible on your federal income taxes, but only under certain circumstances.

• The portion of the registration fee that is charged based on the vehicle's value - as opposed to its size, age or other characteristics - can generally be claimed as a deduction.
• If part of your registration is indeed deductible, you'll need to itemize your deductions to claim it, rather than using the standard deduction.

 West Virginia is a state where you may claim a deduction for personal property taxes instead of car registration fees. You may claim the personal property tax you paid to your county annually, based on the value of your vehicles in West Virginia.  Follow the prompts in TurboTax and the program will determine your deduction for your state tax return.

Follow these directions:

1. With your return open, search for car registration inside your program.
2. Select the Jump to link at the top of your search results.
3. Answer Yes to Did you pay any car registration fees in 2022? and then enter them on the next screen.
4. Follow any additional prompts.

Click here for an article "Is my Car Registration Fee Deductible". Click on "States where you claim personal property tax in lieu of vehicle registration fees."

This also applies to your West Virginia sales tax. You must itemize your deductions in order to claim it.

If you’re taking the sales tax deduction, here’s how to enter the sales tax you paid:

1. Open or continue your return
2. Search for sales tax and select the Jump to link in the search results
3. When asked how you want to enter your sales tax info:
   • Choose Easy Guide if you want TurboTax to walk you through it
   • Choose Enter All My Receipts if you’ve saved all of your receipts and can give the grand total

Please keep in mind:

In order to itemize, your total  itemized deductions must exceed your standard deduction for 2022, which is as follows:

For single taxpayers and married individuals filing separately, the standard deduction is $12,950 in 2021. 

For married couples filing jointly is $25,900, and  

For heads of households, the standard deduction is $19,400. 

  

If you're at least 65 years old or blind, you can claim an additional 2022 standard deduction of $1,400 ($1,750 if using the single or head of household filing status).  

If you're both 65 and blind, the additional deduction amount is doubled. 
 

Click here for additional information regarding the  Standard Deduction vs Itemizing.

If you want to preview your tax return before filing, follow the steps below:

• Sign into your TurboTax account
• Click Take me to my return
• Click My Account and choose Tools
• You will then see Other Helpful Links and can select the option View Tax Summary
• Choose Preview my 1040 and you can click Back to leave the preview screen.