If you itemize deductions, it may be worth including the sales tax on the truck.
It my look like you should be getting Itemized deductions based on the raw numbers, but after crunching the numbers it may not be the best choice for you.
There have been many changes to the Itemized deduction limitations. Here are some of the limitations to Itemized deductions
- Medical expenses: You can only deduct the amount of your medical and dental expenses that is more than 7.5% of your AGI.
- Mortgage Interest: You can deduct the interest you paid during the tax year on the first $750,000 of your mortgage debt for your primary home or a second home. If you are married filing separately, the limit drops to $375,000.
- Local Taxes: Your deduction of state and local income tax, general sales, and property taxes is limited to a combined total deduction of $10,000 ($5,000 if married filing separately).
- Business expenses for employees is no longer allowed.
- There may be other limitations that are not listed.
- Finally, the total of all deductions must be greater than the Standard deduction.
The standard deduction amounts for 2024 are:
- $29,200 – Married Filing Jointly or Qualifying Surviving Spouse
- $21,900 – Head of Household
- $14,600 – Single or Married Filing Separately
For 2024, the additional standard deduction amounts for taxpayers who are 65 and older or blind are:
- $1,950 for Single or Head of Household
- $1,550 for married taxpayers or Qualifying Surviving Spouse
You can also see: The difference between standard and itemized deductions, and what they mean
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
