How can I deduct WA sales taxes from my 2006 return?

Question

Hi, I am a WA state resident. I just learned I can deduct my big purchases sales taxes on my 2006 return. However, I just realized IRS Schedule A which people can use for itemized deductions is only for Form 1040, and I qualify only for Form 1040A.

Question: How can I file using Form 1040A and same time deduct my sales taxes (e.g. I bought a car).

Answer 1

You can't "only" qualify for 1040A - anyone who files is allowed to use 1040. And to take the sales tax deduction, you have to itemize which can only be done by filing a 1040. Unless your total itemized deductions are larger than your standard deduction, you would not itemize.

For the sales tax deduction, you can either take the actual amount you paid (then you'd need to have receipts for what you took) or else the amount in a table that's provided, plus any sales tax you paid on a car or boat.

Answer 2

Itemizing your deductions only benefits you if the total itemizations are greater than your standard deduction...and in order for you to deduct the sales tax, you must itemize everything, from sales tax to medical expenses and interest in your home...if you do not have other items to deduct and just have the sales tax from your vehicle, it may be in your best interest to take the bigger standard deduction.