What is a sales tax

[bfc52caa13f0]

Im 22 what should I put in there??

[JotikaT2]

It depends.  

The sales tax deduction is based upon the amount of sales taxes you pay on most things purchased.  It could be taxes paid on a car to taxes paid on every day items that are broken down on your receipts.  

On your tax return, you can only claim the amount for sales taxes or income taxes paid on your earnings, but not both.  It's also important to note the potential deduction for taxes is also capped at $10,000 currently due to SALT deduction limitations.  Please see this FAQ for additional information.

You can only deduct sales taxes (or state and local income taxes) if the total exceeds the amount of your standard deduction.   In most cases, the standard deduction provides a higher tax benefit than itemizing.  If this applies to you, you may not be able to deduct sales taxes.  See this link for more details on differences between taking the standard deduction or the itemized deduction.

The best option is to enter your sales tax amount.  TurboTax will provide the deduction that results in a higher tax benefit for your particular situation.  

[xmasbaby0]

If you are asking what sales tax means--- I wonder if you live in one of the states that does not even have a state sales tax.  If you live in a state with sales tax, you will notice that tax is added to the amount you pay for various goods and services.  When you buy a sweater----was sales tax added to the price?  When you eat in a restaurant---is tax added to the bill?   Do you see sales tax on your receipts for things you buy?

And...you say you are 22.    Unless you have itemized deductions like mortgage interest, high medical expenses, charity donations, etc. entering sales tax will have no effect at all on your tax due or refund.

[xmasbaby0]

States with no sales tax:

Alaska, Delaware, Montana, New Hampshire and Oregon

[AmyC]

Sales tax is charged by most states on items sold. Each state is unique in exactly which items and how much is sales tax. While most people don't itemize on the federal, some can itemize on their state and the sales tax might be used in place of tax paid through work, especially when you had some large item purchases. The federal government does offer a chart for averages based on income for your area. It is in the program as Easy Guide.

Reference:

Deductions for Sales Tax

How to Enter Sales Tax