where do you claim your car taxes, do you have to itemize? I do not use my car for working purposes
2007-01-18 03:36:35 · 5 answers · asked by DIANE N 1 in Business & Finance ➔ Taxes ➔ United States
You have to be able to itemize to claim a deduction for car taxes. You can only claim if the tax is based on the value of the car. If it is a flat registration fee you cannot claim it. If the tax has an element of both, you can only claim that part which relates to value. For example, assume that a county levies a tax of 1% on the value of the car plus a $25 registration fee. Your car is worth, say $10,000. You would get a deduction of $100. You could not deduct the other $25.
2007-01-18 03:43:32 · answer #1 · answered by skip 6 · 1⤊ 0⤋
Since you are not using the car for business, any deductions relating to the car will be taken on Schedule A--so, yes, you have to itemize.
By car taxes, you might mean an annual property tax or you might mean sales tax on purchase. Both of these (for 2006) are potentially deductible. Check out the section for taxes on schedule A.
For your annual car registration, a portion may be property taxes. That portion is deductible. The remainder is not.
For sales tax, you get to add the sales tax paid on certain purchases (a car is one) to the sales tax you look up in a table. You can then choose to deduct either this sales tax figure OR the state income taxes you paid. Usually, you want to take the higher figure.
2007-01-18 03:46:11 · answer #2 · answered by Take Responsibility 2 · 0⤊ 0⤋
You can only claim car taxes if they are based on the value of the car. If everybody pays the same tax whether they have a clunker or a Jag, you cannot claim anywhere. If the tax is based on car value, then it would go on a schedule A under personal property tax. You must be itemizing.
2016-05-24 03:29:01 · answer #3 · answered by Anonymous · 0⤊ 0⤋
You do have to itemize to claim tax you paid on the purchase of a vehicle. In Schedule A, you would figure your local and state sales tax instead of your state income tax in the taxes deduction section.
You figure your state and local sales tax using the table in Publication 600. In addition, you are allowed to add the sales tax on your vehicle. Compare the total to the amount of state income tax you paid on your 2006 income, and use the larger amount.
2007-01-18 03:41:50 · answer #4 · answered by ninasgramma 7 · 0⤊ 0⤋
yes you have to itemize and you can file that on expresstaxrefund.com
2007-01-18 07:32:06 · answer #5 · answered by mark 1 · 0⤊ 0⤋