SALES TAX
You can enter the sales tax you paid in 2020 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.
Sales tax is an itemized deduction. If your state has a state income tax, you have to choose between using the deduction for your state tax paid OR the sales tax deduction, whichever is higher. The TT process will suggest one or the other as you prepare your return.
“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 TV’s or computers
https://ttlc.intuit.com/questions/1901222-which-deduction-should-i-choose-sales-tax-or-income-tax
https://ttlc.intuit.com/questions/2566624-how-much-sales-tax-did-i-pay-last-year
https://ttlc.intuit.com/questions/1900791-how-do-i-find-my-local-sales-tax
https://ttlc.intuit.com/questions/2566624-how-much-sales-tax-did-i-pay-last-year
I am using TT self employed for 2021 tax year and this solution doen't seem to work. Any other suggestions?
In Turbotax Online, you can follow the instructions in this Help Article to enter the sales tax that you paid.
When I choose the GuideMe option it does not ask if I had any major purchases.
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:
You cannot deduct:
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: