I'm trying to take the sales tax deduction because my state does not have income state tax. I lost my receipts but I did spend a whole lot this year on purchases, mostly online, where sales tax was charged.
Can I include all of the following:
1. Airfare
2. electronics,
3. food/necessities,
4. items I bought for my girlfriend (if I include girlfriend as dependent)
Is saying I spent $1500 per month * 12 = $18000 on purchases this year and basing the tax on that too high?
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The IRS has a formula that gives you a sales tax amount based on your income (the more your income, the more you are likely able to spend) and number of dependents (ditto). You can only add to that standard amount, additional sales tax for purchase of a vehicle, a home, or substantial renovations to a home.
If you try to use your actual expenses, and guess without proof and are audited, you will either lose the deduction entirely, or be switched over the standard amount (if the auditor is generous). Any tax deduction is a matter of legislative grace and the IRS does not have to award any deduction that you can't adequately prove.
Turbotax will automatically calculate the standard amount based on your income.
by the way the deduction for all taxes is limited for years 2018-2015. many people will find that the standard deduction is larger than their itemized. even though your state doesn't have an income tax, do you pay real estate taxes, personal property taxes or certain other state or local taxes. Water and gas bills are not taxes.
standard deduction for 2018
single and married filing separately $12,000
head of household $18,000
married filing joint $24,000
state and local tax deduction limitation for 2018
married filing separately $5,000
any other filing status $10,000
Here's a link to the IRS sales tax calculator: https://www.irs.gov/credits-deductions/individuals/sales-tax-deduction-calculator
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