Sales tax is an itemized
deduction. On your tax return, you will
have the option of deducting the greater of your sales tax or your state and
local income taxes (if any), whichever is higher. The TurboTax process will suggest one or the
other as you prepare your return.
Total Deductible Sales Tax
If
you have all of your receipts for sales tax paid during the year, you
can deduct the total sales tax you paid. But if you are audited (this is not an
audit trigger unless it is abnormally large compared to your income), you
will be required to produce all of those receipts.
Examples
of receipts include those from:
-
Grocery stores
-
Convenience stores
-
Gas stations
-
Restaurants
-
Department stores
-
Drug stores
-
On-line stores
-
Mail orders
-
Any other place you pay sales tax
Here are the steps to enter
sales tax:
- Sign into your
account and click Take me to my return
- Using Search (upper right of program)
search sales tax and click the Jump to sales tax from results
- Follow the TurboTax prompts
to enter sales and use tax
