DS30
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Get your taxes done using TurboTax

It depends on what type of sales tax you are asking about

Self-employment sales tax on items sold by your business -

The sales tax that you collect on your items sold and remitted to the state's Department of Revenue is not reported as an expense related to your business. Also, you will need to make sure that your gross sales total does not include the state sales taxes collected for remittance.

So when reporting your business income and expenses, reduce the gross sales total by the any amount of included state sales tax and do not include these remitted state sales taxes as a business expense.

Please refer to this IRS link for more information about Business Expenses

Self-employment sales tax on items purchased by your business -

You will include the sales tax you pay to purchase an item for your business as part of the cost basis on the item purchased.

Personal sales tax deduction -

You will only be able to claim this sales tax deduction if you itemize and you are not claiming a state income tax deduction (You are only allowed to claim either a state sales tax deduction or a state income tax deduction but not both.)

Please note that you will only be able to take this deduction if you itemize on your return. The TurboTax program will give you the greater of the standard deduction or the itemized deduction based on your particular situation:

To enter this transaction in TurboTax, log into your tax return (for TurboTax Online sign-in, click Here and click on "Take me to my return") type "Sales Tax Deduction" in the search bar then select "jump to Sales Tax Deduction". TurboTax will guide you in entering this information.


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