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February 21, 2025
Question

I bought a brand new car in the state of Georgia in July 2024. What fees can I claim on my taxes?

  • February 21, 2025
  • 1 reply
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I paid a Title Ad Valorem Tax, a title fee, and a plate transfer fee.

    1 reply

    February 21, 2025

    First of all, you would have to benefit from itemizing your deductions to deduct anything associated with the personal auto on your federal return. The basic standard deduction in 2024 is $14,600 for single filers and double that for married-filing joint. If your itemized deductions (mortgage interest, property tax and state income tax up to $10,000, contributions, etc...) is not more than that, it won't benefit you to deduct anything for the auto.

     

    Car registration fees and Ad valorem taxes would be deductible as an itemized deduction only if they were calculated based on the value of the vehicle. You will see an option to enter that in the Deductions and Credits section, then Car and Other things you own, then Car Registration Fees and Personal Property taxes.

     

    If you paid sales tax on the vehicle it is potentially deductible. As far as the sales tax is concerned, you can only use that if you choose to deduct sales taxes as opposed to state income taxes. If you live in Georgia where you pay state income taxes, that tax is usually more that the sales tax deduction so it may not benefit you to choose the sales tax deduction route. You can try though, in the Deductions and Credits section, then Estimates and Other Taxes Paid, then Sales Tax.

     

    The plate transfer fee is not deductible, nor is the title fee, unless it is associated with the annual registration fee and based on the value of the vehicle.

     

    [Edited 2/21/25 at 7:14 AM PST]

    @nakiabryant2 

     

     

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