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Yes, when you input the information, TurboTax will calculate the best option for you so all guess work is eliminated. One may only deduct either sales tax or income tax, whichever is higher. So, deducting sales tax is usually only a benefit for someone who resides in a state that does not charge an income tax.
Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming don't levy an income tax.
However, depending on your specific tax situation, either could be most beneficial. You may enter the sales taxes paid on major items and TurboTax will see if that outweighs the alternative deduction (income taxes).
To enter sales tax in to TurboTax:
For more information on which deduction is right for you, please
see this TurboTax FAQ: https://ttlc.intuit.com/questions/1901222-should-i-deduct-sales-taxes-or-state-income-taxes?jump_to=...
Or,
you may be able to deduct certain taxes for the fees you pay for your
vehicle registration or vehicle license.
Please note these must be based on
your vehicle's value.
To browse the list of states that charge deductible vehicle fees, please see this post .
To enter Car Registration Fees/Personal Property Taxes, if your state allows:
Where in this program do I put the taxes I paid when I bought my new car?
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:
Keep in mind, these deductions are part of itemized deductions and will only affect your return if you are itemizing.
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