Sales tax paid can be included in the calculation of itemized deductions. However, you can include state sales tax paid or you can include state income tax, you cannot take both.
If you had a major purchase you should see if the sales tax deduction is greater than the state income tax deduction.
You can calculate your state sales tax by saving all receipts for the year and manually adding the sales tax paid. Or, you can use a calculation based on your income level. If you use the calculation, you are able to add sales tax for major purchases to the calculated amount.
If you live in a state with no income tax, you will always want to calculate the sales tax deduction.
State income tax paid is calculated by adding state tax withheld from your W-2, any estimated state tax paid during the year and any amount paid when you filed your prior year state tax return.
To enter sales tax in Turbo Tax:
Select Federal Taxes
Select Deductions and Credits
Select Show More at Estimates and Other Taxes Paid
Select Start at Sales Tax
The Turbo Tax program will calculate which method gives you the most benefit.
