Sales Tax

[srobert1]

My son is active duty.  His state of residency is Texas, but he is stationed in NC.  In deductions under Sales Tax it ask to enter where you lived and the sales tax percentage.  Does he put that he lived in Texas for the year or NC?  I assume that since he was deployed for 8 months to another country, he doesn't need to put that in since it wasn't a state?

[ThomasM125]

Yes, you would enter North Carolina and you would just enter the months spent there.

[xmasbaby0]

Before you spend more time on sales tax.......will your son have other itemized deductions to enter like mortgage interest, medical expenses, charity donations.....???

Sales tax is an itemized deduction which has no effect on his tax due or refund unless he has enough other itemized deductions to exceed his standard deduction.

Your itemized deductions have to be more than your standard deduction before you will see a change in your tax owed or tax refund.  The deductions you enter do not necessarily count “dollar for dollar;” many of them are subject to meeting  tough thresholds—medical expenses, for example, must meet a threshold that is pretty hard to reach. (Only the amount that is MORE than 7.5% of your AGI counts)   The software program uses all the IRS rules that apply to the expenses you enter, and it tells you if you have enough to use your itemized deductions or if using the standard deduction is more advantageous for you.  Under the tax laws that have been in effect since 2018, some deductions have been capped—there is a $10,000 limit to the itemized deductions for state, local, property and sales taxes.

The standard deduction makes some of your income “tax free.”  It is not a refund.  You will see your standard or itemized deduction amount on line 12 of your 2024 Form 1040.

2024 STANDARD DEDUCTION AMOUNTS

SINGLE $14,600    (65 or older/legally blind + $1950)

MARRIED FILING SEPARATELY            $14,600    (65 or older/legally blind + $1550)

MARRIED FILING JOINTLY $29,200    (65 or older/legally blind + $1550)

HEAD OF HOUSEHOLD $21,900    (65 or older/legally blind + $1950)

[srobert1]

I have POA for him and do his taxes.  I guess I have been doing it wrong, for I put in the he lived the entire year in Texas because he state of residency is Texas.  So, I need to put NC from Jan. 1 to Dec. 31?  He was out of the country from April to Dec. as well.

[srobert1]

He has nothing else to enter.  He lives in the barracks and medical is provided for him and he has no charity deductions.  I have POA and I always entered the state he lived in as Texas because that is his state of residency.  He is getting the standard deduction.  Do I need to enter that he lived in NC from Jan. 1 to Dec. 31 instead of Tx?  He was also deployed from April to Dec. on a ship.