topic Can i write off the sales tax on my new truck and tractor? in Deductions & credits

Can i write off the sales tax on my new truck and tractor?

deernads — Sat, 01 Jun 2019 03:05:42 GMT

SALES TAX You can enter the sales tax you paid for the ca...

xmasbaby0 — Sat, 01 Jun 2019 03:05:44 GMT

SALES TAX

You can enter the sales tax you paid for the car you purchased in 2016 by going to Federal>Deductions and Credits>Estimates and Other Taxes Paid> Sales Tax. You will be asked if you paid sales tax on a major purchase, and you will be able to enter the sales tax you paid for your new vehicle.

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

Re: SALES TAX You can enter the sales tax you paid for the ca...

Evolvant — Sun, 03 Mar 2024 17:30:06 GMT

Can you do this on your state taxes as well? Can you use Sales Tax paid against your Tax liability vs Income Tax paid to date?

Re: SALES TAX You can enter the sales tax you paid for the ca...

JohnB5677 — Sun, 03 Mar 2024 18:26:48 GMT

You asked "Can you do this on your state taxes as well?"

Sales tax may be a deduction on your state tax (every state may be different).

You also asked "Can you use Sales Tax paid against your Tax liability vs Income Tax paid to date?"

No, Sales tax and income tax are two different taxes. You may be able to deduct sales tax from income in some states, but they do not count as a credit against your income tax liability.

A simplified example; I earned $25,000, I paid $1,500 in sales tax, My state tax rate is 5%

$25,000 income - $1,500 Sales tax = $24,500

$24,500 X 5% = $1,225 in Income tax

You will fave to check you personal home state to see if there is a sales tax deduction.

@Evolvant