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February 3, 2025
Question

can I deduct out of state title expenses in addition to car registration costs

  • February 3, 2025
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    1 reply

    February 3, 2025

    No. Vehicle title expenses are not federally tax deductible.

     

    Car registration fees are only deductible for the portion that is charged based on the value of your car.  If you live in a flat rate registration state, your registration fees are not deductible. 

    To take any deductions for your registration fees, you would need to itemize your return instead of taking the standard deduction.

    Itemized expenses include mortgage interest, gambling losses up to winnings,  charitable contributions, state and local taxes up to $10,000, medical expenses in excess of 7.5% of your AGI and casualty and losses in excess of 10% of you AGI with the first $100 not counting towards the loss.  Your health insurance and all medical expenses are only deductible for the amount that is over 7.5% of your AGI.  This means if your AGI is $50,000, then the amount that is over $3,750 is deductible.  

     

    Then your total itemized expenses would need to be greater than your standard deduction below in order to benefit from your expenses. 

     

    The 2024 Standard Deductions are as follows:

    • Married Filing Joint (MFJ)              $29,200
    • Married Filing Separate (MFS)      $14,600
    • Head of Household (HOH)             $21,900 
    • Single                                                 $14,600                                

    Blind or over 65 and MFJ or MFS add $1,550

    Single or HOH if blind or over 65 add $1,950

     

     

    Standard versus Itemized Deduction

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