topic If I paid $1,402.00 in sales tax buying materials for home renovations is it worth my while to upgrade to deluxe? in Deductions & credits

If I paid $1,402.00 in sales tax buying materials for home renovations is it worth my while to upgrade to deluxe?

annizm — Tue, 14 Jul 2020 22:41:02 GMT

Right now the program says I owe $1,631 will upgrading and figuring in this tax decrease what I owe?

Re: If I paid $1,402.00 in sales tax buying materials for home renovations is it worth my while t...

AnnetteB6 — Tue, 14 Jul 2020 23:05:07 GMT

If you are currently using the standard deduction instead of itemized deductions, then upgrading would make no difference at all. Even if you are using itemized deductions, there is no guarantee that it would decrease your balance due.

Itemized deductions include mortgage interest, property tax, charitable contributions, state and local tax OR sales tax. Therefore, the sales tax amount would not automatically increase your itemized deductions if your state and local tax was already greater than the sales tax total. If it had an effect at all, it does not reduce the taxes dollar for dollar.

@annizm

Re: If I paid $1,402.00 in sales tax buying materials for home renovations is it worth my while t...

annizm — Wed, 15 Jul 2020 04:44:46 GMT

I am itemizing, I got a message that I have to upgrade to Deluxe to enter tax on renovation materials.