topic Where is Texas sales tax deduction in Deductions & credits

Where is Texas sales tax deduction

jmhair2112 — Tue, 04 Jun 2019 20:07:25 GMT

You are allowed a deduction for Texas state sales taxes o...

DS30 — Tue, 04 Jun 2019 20:07:26 GMT

You are allowed a deduction for Texas state sales taxes only if you itemize.

To enter your sales taxes in TurboTax Online or Desktop, please follow these steps:

Once you are in your tax return, click on the “Federal Taxes” tab
Next click on “Deductions & Credits”
Next click on "jump to full list" or “I’ll choose what I work on”
Scroll down the screen until to come to the section “Estimates and Other Taxes Paid ”
Choose "show more", then Sales Tax (start/update/revisit) (screenshot #1)
Choose - continue to sales tax and have the program guide you
Under "Tell Us Where You Lived", you will select your state (Texas) and dates you lived in that state. (screenshot #2)
Under "Tell Us the Sales Tax Rate You Paid While Living in (Texas), you include your sales tax rate (you can usually get this information off a store receipt from your area).

The general sales tax rate for Texas is 8.25 percent. For more information about sales tax rates by state, please refer to this link:

http://taxfoundation.org/article/state-and-local-sales-tax-rates-2015

Re: Where is Texas sales tax deduction

barryb2 — Sat, 29 Feb 2020 16:48:35 GMT

Why is it only asking for large purchases. The majority of my sales tax is not large purchases.

Re: Where is Texas sales tax deduction

xmasbaby0 — Sat, 29 Feb 2020 17:51:00 GMT

You can also use ordinary sales tax along with tax from major purchases.

Go to Federal>Deductions and Credits>Estimates and Other Taxes Paid> Sales Tax. You can use the "Easy Guide" to calculate the sales tax on your "everyday" purchases--the software uses a formula based on your income and the tax rate in your area.

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

https://ttlc.intuit.com/questions/2566624-how-much-sales-tax-did-i-pay-last-year

https://ttlc.intuit.com/questions/3148443-how-do-you-define-major-purchase-or-major-item-for-the-sales-tax-deduction

https://ttlc.intuit.com/questions/1900791-how-do-i-find-my-local-sales-tax

https://ttlc.intuit.com/questions/2566624-how-much-sales-tax-did-i-pay-last-year