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Deductions & credits
Sales tax is the amount of tax you pay when you buy something. It’s added to your bill.
The IRS allows you to deduct either sales tax or state income tax. If you live in a state without an income tax, then you should definitely enter your sales tax information.
If you live in a state with an income tax, the income tax deduction usually works out better.
TurboTax will compare sales tax and income state and give you the bigger deduction. It never hurts to try the sale tax deduction anyway, especially if you made a larger purchase during the year, such as buying a car.
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February 4, 2023
5:53 AM