Your vehicle registration fee may be tax deductible

As tax day fast approaches, April 15, many of you may be trying to find as many tax deductions as possible to ensure you get a fat check back from Uncle Sam or at least reduce the amount you may owe him. Did you know that a portion of your vehicle registration may be tax deductible? “The vehicle license fee part of your payment is the only part of your annual vehicle registration payment that may be deducted on your income tax,” according to the Department of Motor Vehicles. You can find the amount of the vehicle license fees you paid on your Vehicle Registration Renewal Notice  or your Validated Registration Card. Each year that you pay to register your vehicle, your money goes toward several fees. Those fees may include:
  • Registration Fee
  • Vehicle License Fee
  • Weight Fee
  • Special Plate Fee
  • County/District Fees
  • Owner Responsibility Fee
For those of you who cannot find your renewal notice, you can use the online fee calculator to determine the vehicle license fee you paid. Talk to your accountant or other tax consultant about claiming this tax deduction. You can also reach out to the Franchise Tax Board at (800) 338-0505 or the Internal Revenue Service at (800) 829-1040 for tax information.
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