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New Member
posted Jun 4, 2019 6:14:25 PM

Will the site automatically only include either sales or income tax to my filing? Does recommended plan of sales tax require receipts or is it standard by our income?

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1 Best answer
New Member
Jun 4, 2019 6:14:26 PM

Sales tax is an itemized deduction.  On your tax return, you will have the option of deducting the greater of your sales tax or your state and local income taxes (if any), whichever is higher.  The TurboTax process will suggest one or the other as you prepare your return.

Total Deductible Sales Tax

If you have all of your receipts for sales tax paid during the year, you can deduct the total sales tax you paid. But if you are audited (this is not an audit trigger unless it is abnormally large compared to your income), you will be required to produce all of those receipts.

 Examples of receipts include those from:

 - Grocery stores

- Convenience stores

- Gas stations

- Restaurants

- Department stores

- Drug stores

- On-line stores

- Mail orders

- Any other place you pay sales tax

Here are the steps to enter sales tax:

  • Sign into your account and click Take me to my return
  • Using Search (upper right of program) search sales tax and click the Jump to sales tax from results
  • Follow the TurboTax prompts to enter sales and use tax

 

1 Replies
New Member
Jun 4, 2019 6:14:26 PM

Sales tax is an itemized deduction.  On your tax return, you will have the option of deducting the greater of your sales tax or your state and local income taxes (if any), whichever is higher.  The TurboTax process will suggest one or the other as you prepare your return.

Total Deductible Sales Tax

If you have all of your receipts for sales tax paid during the year, you can deduct the total sales tax you paid. But if you are audited (this is not an audit trigger unless it is abnormally large compared to your income), you will be required to produce all of those receipts.

 Examples of receipts include those from:

 - Grocery stores

- Convenience stores

- Gas stations

- Restaurants

- Department stores

- Drug stores

- On-line stores

- Mail orders

- Any other place you pay sales tax

Here are the steps to enter sales tax:

  • Sign into your account and click Take me to my return
  • Using Search (upper right of program) search sales tax and click the Jump to sales tax from results
  • Follow the TurboTax prompts to enter sales and use tax