Can I include the sales tax in the price of an item I’m claiming for a deduction?
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
Learn more about the potential tax benefits of charitable holiday giving. Your holiday donations may boost your refund, depending on the organization.
Learn more about earned income credit eligibility and get tax answers at H&R Block.
Unfortunately, the cost of your engagement ring can't be deducted as a write-off on your personal income taxes. H&R Block tax pros explain why.
Do you have unreimbursed expenses to include on your tax return? Learn how to claim unreimbursed employee expenses with IRS Form 2106.