I live in TX and am trying to file returns, but it keeps asking me for the state and local sales tax rate..this shouldn't apply to me if I am in TX, but I can't skip?

stephfrisce0402 · ‎January 18, 2020

xmasbaby0 · ‎January 18, 2020

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?

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

TomD8 · ‎January 18, 2020

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

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

I live in TX and am trying to file returns, but it keeps asking me for the state and local sales tax rate..this shouldn't apply to me if I am in TX, but I can't skip?