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Hi, I'm a Massachusetts resident for the whole year. In December of 2004 I registered my car with Mass. So in 2005 I paid a small excise tax for the one month in 2004, and my full excise tax for 2005.

I'll say upfront that this doesn't matter. I don't exceed the standard deduction. But I'm curious about this and like to learn as I go for future years when I may itemize :)

When I go into the TurboTax "taxes paid" section, I get to the "Vehicle Registration" section, the help page says:
You can deduct a portion of your vehicle license or registration fee if the:

- Fee is based on the vehicle's value.
- Tax is imposed annually.

Great, so it's deductible!

But then on the page where I enter the amount it says:
Vehicle registration fees in your resident state are not tax deductible.

And the help section also provides a nice list of states in which they are deductible, and Mass is not on there.

But, this isn't a "registration fee", it's an annual tax, which is based on the vehicle's value. Is TurboTax crossing its wires here? Or is there some reason why Mass Vehicle Excise Tax is not a deduction?
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A quick thought, but still a question...

I notice the *next* section is called "Personal Property Tax" and the help says:

Personal property tax is deductible if it is a state or local tax which is:

- Charged on personal property,
- Based only on the value of the personal property, and
- Charged on a yearly basis (even if collected more or less than once per year).

Well, okay, so that sounds right too, but th list of examples says:
Examples include:
- Boats
- Motor homes
- Airplanes
- Mobile homes

Pretty odd for them to leave out cars if that's intended to be here, isn't it?
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You're confusing the registration fee with the excise tax. These are two separate charges in MA, which is why the registration fee is not deductible.

The registration fee is paid to the RMV (I think it's $40 a year). It's not tax deductible.

The excise tax is paid to the municipality in which you reside (and therefore the address on your registration). It is entirely based on the value of your car and is deductible.

Turbo Tax is right in telling you that the registration fees in MA are not deductible; but the excise tax is.

- Megan
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