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Level 2
posted Feb 2, 2021 2:23:54 PM

Sales tax for Major Purchases??

I'm in Washington state and generally us the EasyGuide for the Sales Tax Deduction. There used to be a question about adding major purchases once the initial calculation was completed, but I no longer see it. Is it missing, or am I missing something else?

0 5 3593
5 Replies
Level 15
Feb 2, 2021 9:08:12 PM

SALES TAX

You can enter the sales tax you paid for major purchases in 2020 by going to Federal>Deductions and Credits>Estimates and Other Taxes Paid> Sales Tax.  You will be asked if you paid sales tax on a major purchase, and you will be able to enter the sales tax you paid for your purchase.

Sales tax is an itemized deduction.  If your state has a state income tax, you have to choose between using the deduction for your state tax paid OR the sales tax deduction, whichever is higher.  The TT process will suggest one or the other as you prepare your return.

“Major purchases” that you can enter for the sales tax deduction include:

Motor Vehicles (cars, trucks, motor homes, RV’s, sport utility vehicles and off-road vehicles

Aircraft or boats

Mobile homes

Manufactured housing

Building materials for major home improvements

You cannot deduct: furniture, jewelry, home electronics such as TV’s or computers

https://ttlc.intuit.com/questions/1901222-which-deduction-should-i-choose-sales-tax-or-income-tax

https://ttlc.intuit.com/questions/2566624-how-much-sales-tax-did-i-pay-last-year

https://ttlc.intuit.com/questions/3148443-how-do-you-define-major-purchase-or-major-item-for-the-sales-tax-deduction

https://ttlc.intuit.com/questions/1900791-how-do-i-find-my-local-sales-tax

https://ttlc.intuit.com/questions/2566624-how-much-sales-tax-did-i-pay-last-year

 

 

Level 2
Feb 2, 2021 9:11:32 PM

Thanks for the response. This was the workflow I expected, but that major purchase question had not appeared, despite me being well into the itemized deductions.

Level 2
Feb 2, 2021 9:39:18 PM

Solved! To get back into it I had to run through the EasyGuide again, reconfirm the state sales tax rate, and then it triggered the major purchase question again. 

New Member
Mar 16, 2023 10:59:05 AM

when trying to input the purchase (vehicle), it asks for dates lived in Texas (the entire year). When the final scan is complete I get an audit alert that I have overlapping dates in excess of 365 days living in Texas.  How do I correct this

 

Expert Alumni
Mar 16, 2023 12:49:00 PM

Please go back to that screen and make sure you did not inadvertently enter 2023 in the "From" box.