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February 6, 2024
Question

@ What MT Vehicle registration fees are deductible on Federal taxes? Is RET county option tax deductible on federal taxes?

  • February 6, 2024
  • 1 reply
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@for my personal vehicle, I have researched and researched, but since Montana changed their listed vehicle registration fee names on their itemized transaction fees on the breakdown of their vehicle registration fees description, which are now called 1. GVW TAX,  2. Light Vehicle Registration Fee,  3. MHP Salary and Retention Fee,  4. MVD Admin Fee,  5. RET County Option Tax.  I assume RET County Option Tax is the only thing I can deduct, but I can't find anything that specifically says that.

Can I deduct any of these fees on my personal vehicle registration fees?  The IRS says Montana does charge some fee or fees that are deductible on Federal taxes, but doesn't explain which those are.  IRS says that vehicle registration fees that are charged based on their value of the vehicle are deductible.   Help please and TIA.

    1 reply

    SteamTrain
    Employee
    February 6, 2024

    Yep...sounds like #5.

     

    But TTX eve has a States FAQ list here, describing that particular tax ....(click on first blue sentence)

    Is my car registration fee deductible? (intuit.com)

    ____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
    pm59330Author
    February 7, 2024

    @SteamTrain 

    Thank you, with the link you gave me, I was able to then link to:

    https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-credits-deductions/car-registration-fee-deductible/L0NkGtxYR_US_en_US

    The Intuit/TurboTax chart that showed which state(s) and their specific fee(s), that Federal taxes actually allow tax deductions of their vehicle registration fee(s).  And for Montana, the chart said the only vehicle registration fee that is deductible on my federal taxes is - "The County Option Tax you paid on your vehicles".