In today’s update, we are diving into tax deductions. Keep reading and find out whether or not your car registration is a deductible expense.
According to tax experts, certain car registration fees can be deductible on federal income taxes. Learn how you can deduct car registration taxes and what makes you qualify.
- Fees are charged during registration on behalf of the vehicle’s value. Additionally, depending on the value of the car itself, you will need to itemize your deductions to ensure a claim – as opposed to using a standard deduction.
- Know that each state has a unique way of calculating registration fees on vehicles. Depending on your state, you will be able to know how much you can deduct, giving you an explicit idea of how much you can save.
- To ensure that your vehicle registration is deductible, you need to keep in mind that the value-based auto registration fees are evaluated on an annual basis. Therefore, it is important to know the frequency in which taxes are charged to you – it is less important to know the frequency in which fees are collected
- Lastly, depending on your state, it may be difficult to know whether or not aspects of your car registration are value-based or what portion of fees qualifies for deductions. It changes from state to state and can range from limited options for reductions to states where vehicles can be deducted with a value-based evaluation method.
Learn more on your state’s DMV page and start receiving tax deductions today! https://turbotax.intuit.com/tax-tips/tax-deductions-and-credits/is-your-car-registration-deductible/L06ja6RwR
