Sales Tax Deduction
Menu Path: Deductions/Credits > Itemized Deductions > Taxes Paid
If you itemize your deductions, you can deduct either your state and local income taxes, or the amount you paid in sales tax. The sales tax deduction is meant primarily for those taxpayers who live in states that don't have a state income tax. If you live in a state that does have a state income tax, your state income tax will almost always be higher than your sales tax paid during the year.
If you don't know the actual amount of sales tax you paid during the year, you can use the IRS Sales Tax Deduction Calculator , or you can use the State and Local General Sales Tax Deduction Worksheet in the Schedule A instructions which can be found on the IRS website .
Enter sales tax paid on the Deductible Taxes Paid screen.
If you itemize your deductions, you can deduct either your state and local income taxes, or the amount you paid in sales tax. The sales tax deduction is meant primarily for those taxpayers who live in states that don't have a state income tax. If you live in a state that does have a state income tax, your state income tax will almost always be higher than your sales tax paid during the year.
If you don't know the actual amount of sales tax you paid during the year, you can use the IRS Sales Tax Deduction Calculator , or you can use the State and Local General Sales Tax Deduction Worksheet in the Schedule A instructions which can be found on the IRS website .
Enter sales tax paid on the Deductible Taxes Paid screen.
