Is it true that you can use receipts of purchases you did through out the year and claim it on your tax return? For axample, if I buy a TV of 1,000 and the tax is 82.50, can i claim that tax?
2007-11-12 07:23:59 · 5 answers · asked by xstal_101 3 in Business & Finance ➔ Taxes ➔ United States
Sort of. For the past few years, if you itemize you have had the choice of deducting either sales tax or state and local taxes. That law expired at the end of 2005, was extended for 2006, and I don't know if you'll still be able to for your 2007 taxes. For most people who live in a state with a state income tax, that's more than their sales tax anyway so they'd deduct the state and local taxes instead.
Again, the deduction might or might not be valid for 2007, and in any case is available only if you itemize.
2007-11-12 08:22:00 · answer #1 · answered by Judy 7 · 0⤊ 1⤋
Only if all of the following are true
1. You file Form 1040 (not 1040A or 1040EZ)
2. You itemize on Schedule A (you do not take the standard deduction)
3. You do not deduct any state or local income taxes (you cannot deduct both sales tax and state or local income tax)
4. The year is one for which sales tax deductions are allowed.
You can NOT deduct any sales tax if (a) you take the standard deduction, (b) you deduct state income tax, (c) you deduct local income tax, or (d) the year is one for which the law does not allow sales tax deductions.
2007-11-12 15:50:28 · answer #2 · answered by StephenWeinstein 7 · 0⤊ 0⤋
It is not that simple.
One of the itemized deductions is state taxes. If you itemize, you can deduct either your state income taxes paid or your state sales tax paid throughout the year. The IRS has developed tables to estimate how much you have paid in sales taxes throughout the year based on your income and how many dependents you have.
You can only deduct these if you itemize. For most people, their biggest itemized deduction is their home mortgage interest. So, unless you own a home and are paying a mortgage, chances are you won't have enough deductions to itemize anyway.
2007-11-12 15:30:49 · answer #3 · answered by Wayne Z 7 · 0⤊ 0⤋
You can no longer elect to deduct state and local general sales taxes as an itemized deduction on Schedule A. Sorry, but many other taxes are deductible, but only if you itemize. It's not usually worth itemizing unless you have a mortgage or high medical expenses (out of pocket). Otherwise, your standard deduction has you covered.
2007-11-12 15:34:06 · answer #4 · answered by rob b 3 · 0⤊ 0⤋
you can pick from highest of the allowance for the area where you live, the actual sales tax paid, or the state & local tax you've paid. you will need a lot of expenses for it to be worth claiming more than the standard deduction
2007-11-12 15:33:39 · answer #5 · answered by goldenboyblue 3 · 0⤊ 0⤋