Are sales taxes deductible over and above state income withholdings? In other words, can sales taxes paid by deducted when filing federal (or state) taxes?
2007-09-17 17:59:05 · 3 answers · asked by coolbreeze44105 2 in Business & Finance ➔ Taxes ➔ United States
For the last few years, you've had a choice on your federal return of deducting either sales tax or state and local taxes if you itemize. If you don't itemize, you can't deduct them.
If you chose sales tax, you didn't have to keep all your receipts, the IRS has a table by state, by income, by family size that listed a number you could take without receipts - if you bought a car, plane or boat you could add the sales tax on that to the amount in the table.
The choice of taking either sales tax or state and local tax had originally been set to expire after 2005. It was renewed for 2006, but not made permanent and I'm not sure just when the current renewal expires.
2007-09-18 03:33:46 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
You can take either state income tax OR state sales tax. Not both.
2007-09-18 01:22:03 · answer #2 · answered by Mark S 5 · 2⤊ 0⤋
On Form 1040, there is a place for sales tax paid by you or they have a formula that you can use.
2007-09-18 01:15:52 · answer #3 · answered by Tenn Gal 6 · 0⤊ 3⤋