Vehicle Registration Fees

[fergie2u]

In the side-by-side comparison (2018 vs. 2019) of deductions and credits, my vehicle registration fees I've provided for 2019 are not showing. Fees are under $700. Is this no longer an allowable deduction or would other deductions cancel this out.

[thedebi]

I am having the same problem.  Hopefully some responds soon! thedebi

[bsoulis]

Vehilcle registration fees for 2019 not showing up after entering.

[JohnW222]

A vehicle registration fee is generally deductible, as long as it’s a yearly fee based on the value of your vehicle, and you itemize your deductions.

Please see the TurboTax Help article "Is my car registration fee deductible?" below for further information.  

If you don't itemize deductions, the expense doesn't provide you with any tax benefits.

[teresamccurdy]

On my Michigan return deductions my vehicle registration fees do not show as a deduction. I itemized, but the general deduction for 2020 is larger than all my deductions added together - just like last year (2018) and 2018 return shows the deduction taking place. Why the difference? Also, my property taxes do not show as deductions on the tax form Schedule A.

[KathrynG3]

No. Michigan does not have a separate itemizing of deductions. Vehicle registration fees are deductible on Schedule A. Yes, if the total of your itemized deductions are less than your standard deduction, it is better to take the standard deduction.

If your property taxes are not showing on Schedule A, I recommend returning to the Deductions and Credits section.

Scroll down to Your Home and find Real Estate Taxes. Click edit and verify that the amount is entered. 

The property taxes are entered here or included in the entry for your Form 1098, Mortgage Interest Expense.

The only subtractions allowed are listed on Schedule 1, beginning with line 10.

In fact, the 2019 Michigan MI-1040 Individual Income Tax Book on page 15 state: Miscellaneous subtractions do not include the following (this is not an all-inclusive list): Item 2: Itemized deductions from U.S. Schedule A

Therefore, your 2018 Michigan taxes would technically need to be amended if they included a subtraction for your vehicle registration fees. 

Click the article for more details: How do I amend my return?

@teresamccurdy