topic Taxes question in Get your taxes done using TurboTax

Taxes question

Breannegarcia — Sun, 05 Jan 2020 03:19:43 GMT

I was wondering if I were to save every receipt will I be able to use it white filing my taxes with you?

Re: Taxes question

xmasbaby0 — Sun, 05 Jan 2020 03:24:20 GMT

You mean receipts showing sales tax? Or other receipts--for what? If you are asking about using sales tax as a deduction, you can, but there is a $10,000 cap on the combination of state and local taxes as a deduction. And you have to have enough itemized deductions to exceed your standard deduction or the itemized deductions have no effect at all.

STANDARD DEDUCTION

Many taxpayers year because their itemized deductions are not having the same effect as they did on past tax returns. The new higher standard deduction and the elimination of certain deductions, as well as the cap on state and local taxes have had a major impact since the new tax laws went into effect beginning with 2018 returns.

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. 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.

2019 Standard Deduction Amounts

Single $12,200 (+ $1650 65 or older)

Married Filing Separate $12,200 (+ $1300 if 65 or older)

Married Filing Jointly $24,400 (+ $1300 for each spouse 65 or older)

Head of Household $18,350 (+ $1650 for 65 or older)

(Also + $1650 if legally blind)

Re: Taxes question

xmasbaby0 — Sun, 05 Jan 2020 03:27:57 GMT

SALES TAX

Sales tax is an itemized deduction. If your state has a state income tax, you have to choose between using the deduction for your state tax paid OR the sales tax deduction, whichever is higher. The TT process will suggest one or the other as you prepare your return.

“Major purchases” that you can enter for the sales tax deduction include:

Motor Vehicles (cars, trucks, motor homes, RV’s, sport utility vehicles and off-road vehicles

Aircraft or boats

Mobile homes

Manufactured housing

Building materials for major home improvements

You cannot deduct: furniture, jewelry, home electronics such as TV’s or computers

https://ttlc.intuit.com/questions/1901222-which-deduction-should-i-choose-sales-tax-or-income-tax

Federal>Deductions and Credits>Estimates and Other Taxes Paid> Sales Tax.