MollsBBU
New Member

Deductions & credits

If you elect to deduct state and local general sales taxes, you can use either your actual expenses (see Enter All My Receipts below) or the optional sales tax tables (see EasyGuide below).

  1. Click on Federal Taxes (Personal if using Home and Business)
  2. Click on Deductions and Credits
  3. Click on I'll choose what I work on (if shown)
  4. Scroll down to Estimates and Other Taxes Paid
  5. On Sales Taxes, click the start or update button
  6. Click the blue button to Continue with Sales Tax (if shown)
  7. You'll have two options for entering your sales tax:

 

EasyGuide - This lets the program guide you through interview to calculate an amount. You'll need your combined total state and local sales tax rate in addition to any sales tax paid on major purchases (like your new vehicle). Please see How do you define "major purchase" or "major item" for the sales tax deduction? for more information.

 

Enter All My Receipts - If you have all of your receipts for sales tax paid during the year, you can deduct the total sales tax you paid. But if you are audited (this is not an audit trigger unless it is abnormally large compared to your income), you will be required to produce all of those receipts.