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Level 2
March 9, 2022
Question

After adding $2400 sales tax to my Mass Tax form nothing changed. My taxable income is $9030

  • March 9, 2022
  • 1 reply
  • 3 views
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    1 reply

    Level 10
    March 9, 2022

    Sales tax is an itemized deduction. If your itemized deductions do not add up to more than your standard deduction, TurboTax selects the standard deduction in order to maximize your tax return. 

     

    There are also two other limitations with regard to sales tax. You can only take the tax that benefits you the most: income tax or sales tax. In Massachusetts, you usually end up paying more income tax over the year than sales tax. 

     

    Also, your total taxes are limited to a $10,000 deduction. This would include your sales or income tax, your property tax, and any additional state and local taxes you deducted.