Question

Can I include the sales tax in the price of an item I’m claiming for a deduction?

Answer

Yes. If you’re allowed to deduct certain expenses, you can deduct the full cost of the expense including sales tax.

However, you might have deducted state and local sales tax — instead of state and local income taxes — on Schedule A. If so, you can’t claim the sales tax you paid on property you contributed to a charity for both your:

  • Sales tax deduction
  • Charitable deductions

 

Related Topics

Related Resources

What Is an Enrolled Agent or EA?

What does it mean to be an enrolled agent? Learn more about the roles and requirements of enrolled agent (EA) tax preparers at H&R Block.

What Is Head of Household and Who Can Claim It?

Head of household is a filing status for single or unmarried taxpayers who have maintained a home for a qualifying person, such as a child or relative. This filing status provides a larger standard deduction and more generous tax rates for calculating federal income tax than the Single filing status.

Can I Claim Medical Expenses on My Taxes? What Can I Claim?

If you’re itemizing deductions, the IRS generally allows you a medical expenses deduction if you have unreimbursed expenses that are more than 7.5% of your adjusted gross income for tax years 2017 or 2018. You can deduct the cost of care from several types of practitioners at various stages of care.

Is TurboTax Live the Best Virtual Tax Prep Option?

Looking for virtual tax help with your online filing? Learn more about your options by comparing TurboTax Live to H&R Block Tax Pro Review and Tax Pro Go.