Deducting vehicle license fees Only a portion of your Minnesota vehicle license fees is deductible as personal property tax on line 7 of federal Schedule A of Form 1040. The deduction is allowed only for passenger automobiles, pickup trucks and vans. To determine the correct amount to fill in on line 7 of your federal Schedule A (1040), look on the vehicle license form issued by the Department of Public Safety and find the box labeled “Tax.” The correct deduction equals the amount in this box minus $35 (not the “Total” minus $35). The amounts in the other boxes, “Inspection Fee,” “Plate Fee,” and “Filing Fee,” are not deduct-ible. If you own more than one vehicle, subtract $35 from the amount shown in the “Tax” box for each vehicle. The Inspection fee for 1999 was omitted, because we no longer do vehicle inspections (for private use, anyway) on automobiles; the Filing fee was $3.50, and the plate fee is only on a new car. SO, subtract $38.50 from whatever you gave to the state last year for your tab renewal fee (not new car fee).