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.
Save on your tax bill by learning more about the energy efficient tax credits available to you with help from the tax experts at H&R Block.
Do you need to get an EIN for your small business? Learn more about the EIN application process and get tax answers at H&R Block.
Planning a working vacation? Your travel expenses may be tax deductible if your trip is mainly business-focused. Learn more with the experts at H&R Block.
Filed last year’s taxes after the due date? You might need to use something other than your last year’s AGI amount to e-file.