Skip to main content
April 14, 2025
Question

We bought a car this year, where do I add that information?

  • April 14, 2025
  • 2 replies
  • 0 views
No text available

    2 replies

    Employee
    April 14, 2025

    Unless it is a car for business or an EV you do not enter anything about buying a car.   Or....are you itemizing deductions ---you can enter the sales tax you paid.

     

     

    SALES TAX

    You can enter the sales tax you paid for the car you purchased in 2024 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.  Unless you have enough other itemized deductions like mortgage interest, medical expenses or charity donations,  to exceed your standard deduction the sales tax will have no effect on your tax due or refund.

     

    “Major purchases” that you can enter for the sales tax deduction include:

    Motor Vehicles (cars, trucks, motor homes, RV’s, sport utility vehicles and off-road vehicles

    Aircraft or boats

    Mobile homes

    Manufactured housing

    Building materials for major home improvements

    You cannot deduct: furniture, jewelry, home electronics such as TV’s or computers

     

    **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.**
    LindaS5247
    April 15, 2025

    If you are a business and your car is used for your business, you can enter your car purchase on your Schedule C (or business return). 

     

    If you are an individual taxpayer there is no deduction for buying a new car other than the sales tax. You can only claim sales tax if you are itemizing your deductions.

     

    You can get to that section of TurboTax as follows to enter your sales tax:

     

    1. Click on the search icon in the upper-right of your TurboTax screen.
    2. Type "sales tax" in the search bar
    3. Click on the link "Jump to sales tax"

     

    Your TurboTax screens will look something like this:

     

     

     

     

     

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