Is there a vehicle sales tax deduction? Can I deduct sales tax on a vehicle purchase?
There is a vehicle sales tax deduction but you will have to choose between taking this deduction or claiming your state income tax. You can deduct sales tax on a vehicle purchase, but only the state and local sales tax. However, you can only claim this deduction if you do so instead of claiming a deduction for state income tax. You’ll only want to do this if you paid more in state and local sales tax than you paid in state income tax.
If you deduct sales tax, you can either:
- Save sales receipts and deduct actual sales taxes paid.
- Use the IRS sales tax tables to figure your deduction. These tables calculate the estimated sales tax you paid based on your income. They don’t include large purchases. So, to the amount in the table, you can add the sales tax you paid on any of these:
- Motor homes
See the Form 1040 instructions for the tables.
Can you claim your child as a dependent if they are a full time student? Learn about dependent requirements and get tax answers from H&R Block.
How can you apply for a business meal or entertainment deduction? Learn more about these options and get tax answers at H&R Block.
Have you ever thought about investing in a Cayman Islands tax haven? Before opening an account, or making adjustments to an already existing account, review these tax tips.
Your ex-spouse claimed your child as a dependent, but lived with you all year. Can you claim the child? If so, how do you file? Get tax answers from H