You'll need to sign in or create an account to connect with an expert.
Why wouldn't it? Texas has no state income tax, but do you not have sales tax? The software is giving you the chance to use your sales tax as a deduction on your federal return. Look at some of the receipts you have for 2019 purchases. What does it show near the bottom of your receipt for sales tax?
If you itemize, you can deduct state sales tax on your federal tax return, subject to IRS limits on the amount. In fact, if you live in a no-income-tax state like TX, it's a good idea to deduct state sales tax. That's because the IRS lets you deduct state income tax or state sales tax, but not both.
If you (like most of us) have no idea what you paid in sales taxes, the IRS offers a handy online calculator here: https://www.irs.gov/credits-deductions/individuals/sales-tax-deduction-calculator
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
distracted09
New Member
hurricainehope911
New Member
As79
Returning Member
Michael00001
Level 1
captmdismail
New Member