A new car and your tax return

Ask NJMoneyHelp

Photo: morguefile.com

Q. I bought a car in 2017. Do I need to show this on my federal or state return somehow?
— Driver

A. The basic answer is no.

But you may want to consider the sales tax you paid depending on your financial situation.

“For 2017, regarding your federal tax return, you can take the sales tax deduction or the state income tax deduction, whichever is greater,” said Altair Gobo, a certified financial planner with U.S. Financial Services in Fairfield.

He said in most cases, it will be the state income tax.

Certain states allow a deduction for sales tax, he said, but New Jersey does not.

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