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Deductions & credits
If you use the IRS table to figure what they say you paid in sales tax it shows they assume you spent very little on things taxed. Apparently the table is developed for the average 30's, 40's year old family that has a non-taxed mortgage and is saving a lot of money for retirement and college. However, this does not match the profile of a retired person that has already done all that and has more money than they need and no mortgage. Thus they spend practically every dollar of income and those are subject to sales tax. For people in that category the IRS table is a rip off as it doesn't come close to estimating your real state and local sales tax paid.
March 19, 2021
10:14 AM