Sales Tax - Is the IRS going to let you deduct sales tax on 2007 return?

Answer 1

textbook answer is No, they never have, and won't be starting anytime soon.

Answer 2

The rules still posted at irs.gov say that you can, the new rules aren't out yet. I've heard that the sales tax deduction will expire this year, but I can't confirm.

The old rules (tax year 2006) are that you can save all your receipts and deduct the total sales tax you paid, or you can use the charts to see what the standard deduction is.

Whatever amount you come up with, you can add to that sales tax paid for certain items, such as cars.

(This is an itemized deduction, so you have to be using Schedual A to take it.)

This deduction was schedualed to expire at the end of 2006. The instructions for Sched A specifically state that this provision was extended through 2007, even though this information doesn't seem to be available anywhere else.

Answer 3

Yes, according to the instructions for Schedule A for 2007. It's posted on the IRS website now.

Answer 4

Go to irs.gov
Search on 1040 schedule A.
See if line 5 still shows a box a and a box b.

*sigh* Bostonian is the only one who looked.
When a tax feature expires in 2007, that means it's still good for 2007. While there is a remote chance the government will suddenly through this one away while they debate the AMT, I truly doubt that will happen.

Answer 5

Last year, you had a possibility of claiming state income Or sales tax on federal returns if you itemized. Most people benefitted more from the income tax, but for people who spent a lot in sales tax in, for instance, buying a car, had the option. I heard this was changing this year, but Congress still hasn't addressed a multitude of tax issues yet this year.

Answer 6

No. The deduction for sales taxes paid disappeared over a decade ago, and has not been reinstated at this point. There is nothing in the works to reinstate it at this time either.

Answer 7

Not that I've heard of.