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State tax filing
It depends.
The sales tax deduction is based upon the amount of sales taxes you pay on most things purchased. It could be taxes paid on a car to taxes paid on every day items that are broken down on your receipts.
On your tax return, you can only claim the amount for sales taxes or income taxes paid on your earnings, but not both. It's also important to note the potential deduction for taxes is also capped at $10,000 currently due to SALT deduction limitations. Please see this FAQ for additional information.
You can only deduct sales taxes (or state and local income taxes) if the total exceeds the amount of your standard deduction. In most cases, the standard deduction provides a higher tax benefit than itemizing. If this applies to you, you may not be able to deduct sales taxes. See this link for more details on differences between taking the standard deduction or the itemized deduction.
The best option is to enter your sales tax amount. TurboTax will provide the deduction that results in a higher tax benefit for your particular situation.
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