Is there a deduction for sales tax not mentioned on the tax form that recently was approved?

Answer 1

In the Extender Bill passed in December, Congress approved an extension of the sales tax deduction for the next couple of years. It is not shown on the current Schedule A forms. It is entered where you enter the state income tax deduction. You don't have to have kept records of your sales tax paid. There is a formula based on your income, number of dependents & state & county sales tax rate.

Answer 2

The sales tax deduction was scheduled to expire last tax year. Congress extended the deduction after the IRS finalized the forms for 2006. The IRS website says to claim sales taxes on line 5 of the Schedule A and write 'st' next to the amount.

Answer 3

The recent change was for the telephone excise tax that has been charged for years. The govt is allowing you to deduct the tax from your income this year. You can also elect to deduct sales tax instead of state tax on Schedule A. This helps people from states that do not charge state tax. Other than that I'm not aware of any sales taxes that are deductible.

Answer 4

It not "recent", it's been around -

If you Itemize your deductions (rather than using the Standard Deduction), you can deduct EITHER sales tax paid (if you kept records) or state and local income tax paid on your Schedule A. (but not both).