, Answering FAQ'sTurboTax Employee
Generally, excise taxes are not deductible. However, state and local taxes imposed on personal property are deductible if three conditions are met: the tax must be:
- based on the value of the property,
- imposed on an annual basis, and
- imposed on personal property (a car is considered personal property).
Payment for car, truck, or RV registration and licensing or a motor vehicle tax may be deductible as a personal property tax if it is imposed annually and assessed in proportion to the value of the car.
Personal Property Taxes and TurboTax
If you determine that your excise tax qualifies as a personal property tax, and want to jump directly to the entry screen for personal property taxes, follow these directions.
- Select Federal Taxes (Personal in the Home & Business edition).
In Online TurboTax, click the bars at the upper left corner to show Federal Taxes on the selection list; enlarge the screen if needed to show the left side selection list.
- Select Deductions & Credits, and on the next screen, click I'll choose what I work on.
- Scroll down the Your Deductions & Credits screen to the Your Home group.
- Click on the Start/Update button to the right of the Property Taxes topic.
- Follow the prompts.
- What's the difference between "property tax" and "personal property tax"?
- Schedule A, Itemized Deductions