The sales tax is reported on Schedule A when itemizing. If you are claiming the standard deduction, you cannot claim sale tax on the major purchase.
Additionally, you can deduct the state and local general sales tax you paid during the year, or you can deduct the state and local income tax you paid during the year. This would include the sales tax on a major purchase. You can't do both.
If you decide to claim the sales tax, you would do that by going to Federal>Deductions and Credits>Estimates and Other Taxes Paid> Sales Tax. You will be asked if you paid sales tax on a major purchase, and you will be able to enter the sales tax you paid for your major purchase.
Major purchases” that you can enter for the sales tax deduction include:
- Motor Vehicles (cars, trucks, motor homes, RV’s, sport utility vehicles and off-road vehicles
- Aircraft or boats
- Mobile homes
- Manufactured housing
- Building materials for major home improvements
You cannot deduct:
- furniture
- jewelry
- home electronics such as TVs or computers
Which Deduction Should I Choose Sales or Income?
How do you define "major purchases"
How do I find my local sales tax?
Before you spend a lot of time on this, will you have enough to itemize or will you end up taking the standard deduction? Standard Deductions for 2021 are:
- $12,550 for single filers
- $12,550 for married couples filing separately
- $18,800 for heads of households
- $25,100 for married couples filing jointly
- $25,100 for surviving spouses2
