Yes.
Nontaxable disability income and
certain other nontaxable income can be reported in TurboTax to increase your
sales tax deduction, lowering your overall tax liability. Do not include income
you have already reported as taxable income. The following are some examples of
nontaxable income you can include for calculating the sales tax deduction:
- Child
support
- Worker's
compensation
- Military
basic quarters and subsistence allowances
- Tax-exempt
interest
- Public
assistance payments
- Economic
recovery payments
- Nontaxable
Social Security and Railroad Retirement benefits
- Nontaxable
combat pay
- Veteran's
disability pay for active service-related disabilities in the military or
certain government services
- Veteran's
disability pay for combat-related injuries or illness
