TomD8
Level 15

State tax filing

If you itemize, you can deduct state sales tax on your federal tax return, subject to IRS limits on the amount.  In fact, if you live in a no-income-tax state like TX, it's a good idea to deduct state sales tax.  That's because the IRS lets you deduct state income tax or state sales tax, but not both.

 

If you (like most of us) have no idea what you paid in sales taxes, the IRS offers a handy online calculator here:  https://www.irs.gov/credits-deductions/individuals/sales-tax-deduction-calculator

**Answers are correct to the best of my ability but do not constitute tax or legal advice.