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June 1, 2019
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I bought a new car in 2016 and I don't see a place to claim the deduction on the sales tax, can you please help me

  • June 1, 2019
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Best answer by xmasbaby0

SALES TAX

You can enter the sales tax you paid for the car you purchased in 2016 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.  If your state has a state income tax, you have to choose between using the deduction for your state tax paid OR the sales tax deduction, whichever is higher.  The TT process will suggest one or the other as you prepare your return.

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xmasbaby0Answer
Employee
June 1, 2019

SALES TAX

You can enter the sales tax you paid for the car you purchased in 2016 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.  If your state has a state income tax, you have to choose between using the deduction for your state tax paid OR the sales tax deduction, whichever is higher.  The TT process will suggest one or the other as you prepare your return.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
June 1, 2019
I live in a state without a state income tax.  I am selecting the EZ Guide to compute the sales tax deduction however it is not asking me if I paid sales taxes on a major purchase.  Since I purchased a car in 2016 I would like to receive this deduction.  How do I do this?