Personal Property Taxes Paid

According to IRS Instructions for Schedule A, you can only deduct state and local personal property taxes if they were based on value alone and were imposed on a yearly basis. The most common type of personal property tax is vehicle registration fees. Many state or local taxing authorities base this fee on the value of your vehicle. If you're unsure whether or not your vehicle registration fees are based on value, please contact the taxing authority for verification.

To enter your personal property taxes paid:

  1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then click Federal.
  2. Click Itemized or Standard Deductions in the Federal Quick Q&A Topics menu to expand, then click Taxes paid.
  3. Continue with the interview process to enter all of the appropriate information.
  4. On the screen titled Enter your deductible personal property taxes, enter the Personal property taxes paid in 2020 amount, then click Continue.

This information will then flow to Schedule A (Form 1040) Itemized Deductions, Line 5c.

Note. Although commonly referred to as property taxes, taxes you pay on your home are known as "real estate taxes" and would be entered separately on the screen titled Enter any other deductible taxes paid in 2020. See Real Estate Taxes Paid for more information.

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.