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New Member
posted Jul 12, 2020 3:34:44 PM

Can I change the sales tax deduction from the standard amount to the larger amount I get from the IRS 2019 Sales Tax Deduction Calculator?

TIRS tax deduction calculator states I should deduct $3,331 but Turbo tax keeps populating a deduction of $1,542.  How do I correct that?

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3 Replies
Expert Alumni
Jul 13, 2020 6:53:47 AM

Be cautious about the tax rate you are entering in TurboTax. You should be getting the same result. If you manually enter a number, it will assume you tracked actual expenses. The $3,331 deduction seems rather high for a typical sales tax deduction.

 

IRS Sales Tax Deduction Calculator

 

If you are trying to take the deduction for sales tax, you must choose between income taxes paid and sales tax. You cannot deduct both. If you live in a state where you have an income tax, that is generally the most beneficial deduction for you. State and local tax deductions (including real estate) are capped at $10,000.

 

To take the sales tax deduction:

  • From the Federal menu, Choose Deductions & Credits
  • Expand the menu for Estimates and Other Taxes Paid
  • Click Start/Revisit next to Sales Tax
  • Choose to try the sales tax deduction and click EasyGuide on the next screen
  • Choose your state.
  • Enter the tax rate for your location. Click Continue.
  • Answer Yes to the question Did you buy any major items.
  • On the following screen, enter the requested information.

New Member
Mar 13, 2022 3:21:06 PM

I have the same issue in my 2021 Sales Tax Deduction calculation.  I live in unincorporated DeKalb, GA and that option is not listed but Tucker,DeKalb,GA has the same sales tax rate.  TurboTax gives me a deduction of $1,700+ while the IRS web site calculator gives me a deduction of $1,900+.

     I'm retired and GA excludes some retirement income from taxes so even the TurboTax state and local sales tax deduction is greater than the state income tax deduction.

    Thanks.

Expert Alumni
Mar 14, 2022 9:44:23 AM

Yes, you can take the deduction you got from using the IRS sales tax calculator. 

 

I would double check the information that you input to get the deduction. You should also print and/ or save the information from the IRS website in case you are audited. 

 

To enter that amount as your state sales tax deduction:

  1. Select Federal from the left side menu.
  2. Select Deductions and Credits toward the upper left. 
  3. Scroll down to Estimates and Other Taxes Paid
  4. Expand the section, click Revisit to the right of Sales Tax.
  5. On the first screen, select Try Sales Tax Deduction anyway.
  6. Select Enter my receipts on the next screen.
  7. Enter the amount from the IRS calculator in the box next to Sales tax paid.
  8. Continue through the end of the section.

 

@jimbo17