Skip to main content
March 24, 2023
Question

Out of State Major Purchase

  • March 24, 2023
  • 1 reply
  • 0 views

I live in Delaware but bought a car (for personal use only) in Maryland in 2022.  I financed the purchase. 

What, if anything, do I have to include in my federal or state tax returns? If I have to do something in a state return, which state?

    1 reply

    March 24, 2023

    The IRS allows you to large either state income tax paid or sales tax. Delaware has no sales tax so your income tax deduction will probably work out better.

     

    TurboTax will give you the best result if you enter your sales tax in Deductions & Credits

     

    • Type sales tax in Search (magnifying glass) in the top right corner
    • Select Jump to sales tax
    • On “Let's Compare Your Sales Tax and Income Tax” choose Try Sales Tax Deduction Anyway
    • On “How do you want to enter your sales tax info?” choose Enter All My Receipts and add the sales tax you paid on your car and any other sales tax you paid.

    Delaware allows you to claim either the standard or itemized deductions. TurboTax will carry your sales tax deduction (if applicable) to your Delaware return if your sales tax deduction is what you are using on your federal return.

     

    You do not have to do anything for Maryland. If you are filing a non-resident Maryland return, your federal information will carry over to state.

    **Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"
    March 24, 2023

    I'll work through your recommendations.

    THANKS!