Can I deduct my state sales tax and my local sales tax?
You can deduct one of these:
- State sales tax and local sales tax
- State and local income taxes
If you deduct state sales tax and local sales tax, you can either:
- Save sales receipts and deduct actual sales taxes paid.
- Use the IRS’s sales tax tables to figure the deduction. The tables are on the Form 1040 instructions.
If you use the sales tax tables, you can also include sales taxes you paid for a car, boat, or other vehicle. However, the item might be taxed at a rate higher than the general sales tax rate. If so, you can only include the taxes you paid up to the amount of the general sales tax rate.
Report your deductible state income taxes or sales taxes on Schedule A. You can also deduct state real estate taxes and personal property taxes on Schedule A.
If you have Medicare, does your premium qualify for a deduction? Learn more from the tax experts at H&R Block.
Learn more about the rules for household employee taxes and get tax answers at H&R Block.
Does one or more of your dependents receive income from a job or other source? Learn how this may affect your taxes. Get answers from H&R Block.
Learn more about filing head of household from the tax experts at H&R Block.