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New Member
posted Jun 4, 2019 12:27:53 PM

I live in Washington state, can I deduct the tax charged on liquor and on marijuana? I believe it is considered a sales tax based on the value of the sale.

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Expert Alumni
Jun 4, 2019 12:27:55 PM

No, because only general sales tax is deductible, and these items are taxed at a different (higher) rate than the general sales tax rate. You are limited to claiming either the deduction computed by using the sales tax table amount applicable to your income, or adding up all of your receipts for the year for items taxed at the general rate. Or you can add certain major purchases to the sales tax table amount.

1 Replies
Expert Alumni
Jun 4, 2019 12:27:55 PM

No, because only general sales tax is deductible, and these items are taxed at a different (higher) rate than the general sales tax rate. You are limited to claiming either the deduction computed by using the sales tax table amount applicable to your income, or adding up all of your receipts for the year for items taxed at the general rate. Or you can add certain major purchases to the sales tax table amount.