This answer above is from Alexander.
Nontaxable disability income (and certain other nontaxable income) can be reported in TurboTax to increase your sales tax deduction, lowering your overall tax liability. In TurboTax:
- Select the Federal Taxes tab (Personal tab in Home & Business product)
- Then choose Deduction & Credits and click on Explore On My Own.
- Scroll down to Estimates and Other Taxes Paid, and click on the Sales Tax Start/Update box.
- In the Sales Tax interview, click Continue with Sales Tax and select Easy Guide.
- Enter your location and sales tax information. When finished, click Done.
- Next is a screen titled Nontaxable Income, click Yes to add your nontaxable income.
