Question

Can someone help me understand, I already paid taxes on my dividend withdraw from my annuity. I just entered, it has drastically lowered my return??

Forum|Forum|4 years ago
March 6, 2022
1 reply
0 views

I lost my car in an accident (liability only - old car). Used the money to put down payment on car.

TurboTax Deluxe Online

Employee

Sorry about your car, but unless you are self-employed there is nothing to enter about that unless you are itemizing and want to enter the sales tax you paid for the new car.

SALES TAX

You can enter the sales tax you paid for the car you purchased in 2021 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. “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

https://ttlc.intuit.com/questions/1901222-which-deduction-should-i-choose-sales-tax-or-income-tax

https://ttlc.intuit.com/questions/2566624-how-much-sales-tax-did-i-pay-last-year

https://ttlc.intuit.com/questions/3148443-how-do-you-define-major-purchase-or-major-item-for-the-sales-tax-deduction

https://ttlc.intuit.com/questions/1900791-how-do-i-find-my-local-sales-tax

https://ttlc.intuit.com/questions/2566624-how-much-sales-tax-did-i-pay-last-year

As for your annuity---there may have been tax withheld when you took out the money, but maybe not enough once it was added to your other income. Your tax due is based on the total amount of income you received; if you did not pay enough tax during the year, then the added income from the 1099R made you owe more--or at least reduced the refund you were seeing until you added that income.

Do check to make sure you entered it correctly.

To enter your retirement income, Go to Federal> Wages and Income>Retirement Plans and Social Security>IRA 401 k) Pension Plan Withdrawals to enter your 1099R.

**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.**

earsndizAuthor

Thank you very much for taking the time to reply. I guess I gave to much info. To clarify, I wasn't trying to write off the purchase of my car. But I will go back and see how much taxes I paid on it under "major purchases". I hadn't thought of that! Back to my question, I had the taxes (10% so it must be more) already deducted from my withdraw so I wouldn't have to pay on my return. I do understand it would go towards my income but didn't realize how much difference it would make. I've done this once before and it barely made a difference which is is why I'm shocked how much difference it made this time around. I wanted to make sure I was doing everything correctly. Before Turbo I had an acct. do my taxes (when I made more money :)) I'm grateful I can now do it myself. Thanks again!