topic Why is the Sales Tax Credit not having any impact on my total Federal amount due? in Get your taxes done using TurboTax

Why is the Sales Tax Credit not having any impact on my total Federal amount due?

jgalt4755 — Tue, 10 Feb 2026 10:06:21 GMT

Re: Why is the Sales Tax Credit not having any impact on my total Federal amount due?

xmasbaby0 — Fri, 12 Jan 2024 17:40:26 GMT

Sales tax is an itemized deduction. If you do not have enough itemized deductions to exceed your standard deduction, then sales tax has no effect on your refund or tax due.

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 new tax laws, some deductions have been capped—there is a $10,000 limit to the itemized deductions for state, local, property and sales taxes.

Your standard deduction lowers your taxable income. It is not a refund. You will see your standard or itemized deduction amount on line 12 of your 2023 Form 1040.

2023 STANDARD DEDUCTION AMOUNTS

SINGLE $13,850 (65 or older/legally blind + $1850)

MARRIED FILING SEPARATELY $12,850 (65 or older/legally blind + $1500)

MARRIED FILING JOINTLY $27,700 (65+/legally blind) ) + $1500 per spouse

HEAD OF HOUSEHOLD $20,800 (65 or older/blind) + $1850)

Re: Why is the Sales Tax Credit not having any impact on my total Federal amount due?

Mike9241 — Fri, 12 Jan 2024 17:36:44 GMT

there is no federal sales tax credit. sales taxes would be part of itemized deductions so if your standard deduction is larger, those sales taxes produce no tax benefit.

Re: Why is the Sales Tax Credit not having any impact on my total Federal amount due?

DoninGA — Fri, 12 Jan 2024 17:41:59 GMT

Sales taxes are reported as an itemized deduction on Schedule A. The greater of the Sales Taxes reported or the State Income Taxes reported will be used. There is a limit of $10,000 that can be deducted for State and Local Taxes if you are Single or Married Filing Jointly, $5,000 if filing as Married Filing Separately.

The total of all your itemized deductions on Schedule A must be greater than the standard deduction for your filing status to have any tax benefit.

Standard deductions for 2023

Single - $13,850 add $1,850 if age 65 or older
Married Filing Separately - $13,850 add $1,500 if age 65 or older
Married Filing Jointly - $27,700 add $1,500 for each spouse age 65 or older
Head of Household - $20,800 add $1,850 if age 65 or older