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Level 6
March 1, 2020
Question

How do I get the right amount for sales tax?

  • March 1, 2020
  • 1 reply
  • 1 view

I did the IRS Sales Tax Deduction Calculator.  Per IRS:  State=6.2500%.  Local 1.100%.  I entered 7.35%.  Turbo Tax Premeier has my deduction as $797.  IRS has that it is $937.    What income is this based on; Income 1040, Line 7 (taxable), or total income (taxable + nontaxable).   Should I try and override the $797 and change it to $937 or leave it alone?  Thanks

    1 reply

    Level 15
    March 1, 2020

    Follow these directions:

    • Under Deductions & credits / Your tax breaks, scroll down to Estimates and other taxes paid.
    • Click on Start/Revisit to the right of Sales Tax.
    • Under How do you want to enter your sales tax info?, click on EasyGuide.
    • Under Places you lived, you can click on Add a location.
    • Under Tell us the sales tax rate you paid while living in state, you enter the Total Sales Tax Rate that you paid.

    See also this TurboTax Help.

    **Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"
    Level 6
    March 1, 2020

    Thanks.  I got that far.  It asks what Locality Group; 1, 2, or 3.  I live in Illinois near St. Louis.  I can not find the Locality Group even using Google.  Program wants me to fix this error and I don’t know how to find the answer.

    Level 15
    March 2, 2020

    Keep the TurboTax calculation--it is more exact and is calculated on your income.  The IRS Sales Tax Calculator uses an income range (less than $20,000; $20-30,000; etc.)