29 Apr Can my son deduct sales tax on a new car?

Q. If I purchase a new vehicle in N.J. and my son pays the sales tax, can he claim it on his N.J. income tax return under sales tax if the vehicle is in my name?
— Mom

A. People are often confused about the ability to deduct sales tax on their tax returns.

In your case, the car is in your name.

So you or a spouse can take a tax deduction related to the purchase of your car, but your son cannot, said Gail Rosen, a Martinsville-based certified public accountant.

Even if your son owns the car, deducting the sales tax is not likely to help him, Rosen said.

“To use sales tax as a deduction, your son would have to itemize his deductions versus take the standard tax deduction,” she said. “Nearly 90% of taxpayers benefit from taking the standard deduction versus the itemized deduction.”

Good luck with the car.

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This story was originally published on April 29, 2022.

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