Yes, when
you input the information, TurboTax will calculate the best option for you so
all guess work is eliminated. One
may only deduct either sales tax or income tax, whichever is higher. So,
deducting sales tax is usually only a benefit for someone who resides in a
state that does not charge an income tax.
Alaska, Florida, Nevada, South
Dakota, Texas, Washington, and Wyoming don't levy an income
tax.
However,
depending on your specific tax situation, either could be most beneficial. You
may enter the sales taxes paid on major items and TurboTax will see if that
outweighs the alternative deduction (income taxes).
To enter sales tax in to
TurboTax:
- Click
the Federal Taxes tab at the top
Or the Personal tab
if using Home & Business
- Then, Deductions
& Credits
Desktop users may need to click I'll choose what I work on here
-
Scroll down to the
"Estimates and Other Taxes Paid section"
Online users may need to click Show more to expand this section
- Next to "Sales Tax"
click Start/Update/Revisit
- Follow the interview screens
to input this information
For more information on which deduction is right for you, please
see this TurboTax FAQ: https://ttlc.intuit.com/questions/1901222-should-i-deduct-sales-taxes-or-state-income-taxes?jump_to=...
Or,
you may be able to deduct certain taxes for the fees you pay for your
vehicle registration or vehicle license.
Please note these must be based on
your vehicle's value.
To browse the list of states that charge deductible vehicle fees,
please see
this post
.
To enter Car
Registration Fees/Personal Property Taxes, if your state allows:
- Click the Federal Taxes tab at the top
Or the Personal tab if using Home & Business
- Then, Deductions & Credits
Desktop users may need to click I'll choose what I work on here
- In the
"Cars and Other Things You Own" section
Online users may need to click Show more to expand this section
- Next to
"Car registration fees", click Start/Update/Revisit
- Then,
follow the interview screens from there
