When a married couple lives in a state with no income taxes, they are allowed to deduct sales tax. If the couple paid $1560 in sales tax on a $26000 car and another car had state sales tax of $1800. Are the state sales taxes deductible on Schedule A? If yes, all of them, and do you list it under personal property taxes or under other taxes and write in state sales tax? Thanks, Tim
2007-11-13 15:40:24 · 7 answers · asked by Timothy H 1 in Business & Finance ➔ Taxes ➔ United States
There's a line (5) for state sales or income taxes. You can claim either but not both; check the appropriate box. If you take the sales tax deduction you use the table in the Schedule A instructions to figure the deduction, but you may add the actual tax paid for big-ticket items such as a car, boat, RV, airplane, etc. to that amount.
2007-11-13 15:44:55 · answer #1 · answered by Bostonian In MO 7 · 3⤊ 0⤋
Uhhh... First you say that the sales tax is your only deduction and then you say that you shelled out over 50% of your income on mortgage interest and property taxes. How is it that you are paying over 50% of your income in mortgage interest and property taxes?? That's pretty much a guaranteed audit. If you actually did pay that much and can prove it, by all means go ahead and itemize and add on the sales taxes as well. Just be prepared for the audit when it hits. I make 5 times as much and don't have that much in mortgage interest and property taxes and not much more in total itemized deductions.
2016-05-23 02:20:15 · answer #2 · answered by darlene 3 · 0⤊ 0⤋
As I understand it, the sales tax deduction is generally just a flat rate based on your state and on your income. There may be a case where you can claim more than the standard percentage if you can document that you spent more in sales tax. You can ask a tax preparer or go to www.irs.gov for free advice.
2007-11-13 15:46:27 · answer #3 · answered by Anonymous · 0⤊ 1⤋
On your federal Schedule A, you have the option of deducting EITHER your state/local income taxes OR your sales taxes.
2007-11-13 15:45:03 · answer #4 · answered by Anonymous · 1⤊ 0⤋
Are you reporting your taxes on a computerized program or on paper? I do taxes using software and normally you pick either state tax or sales tax. If you pick sales tax, then you are asked to enter how much. It is definitely not under personal property tax.
2007-11-13 15:46:24 · answer #5 · answered by Codys mom 5 · 0⤊ 0⤋
Try here!
http://www.irs.gov/pub/irs-pdf/f1040sab.pdf
But mind you this will only apply if your deductions are more than the standard deduction. Use a program like TAXCUT from H & R Block and it will help you decide.
2007-11-13 15:46:44 · answer #6 · answered by kitkatish1962 5 · 0⤊ 0⤋
why are you paying the sales tax on a car?
Have the car dealer pay it. they want the sale, let them pay the sales tax. i have never paid the sales tax on a car.
I have the dealer pay the tax. The IRS does not say, the comsumer has to pay the sales tax. it just has to be paid.
2007-11-13 15:46:12 · answer #7 · answered by Stingray 7 · 0⤊ 5⤋