It says that I can write off sales tax on major purchases for a tax deduction. How do I do that?
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It says that I can write off sales tax on major purchases for a tax deduction. How do I do that?

Also when or how do I know I get a tax deduction for work related expenses?
2 Replies
Level 15

It says that I can write off sales tax on major purchases for a tax deduction. How do I do that?

You are posting from the Free version, which does not support itemizing deductions.  Are you expecting to upgrade to Deluxe in order to itemize?  And will you have enough deductions to exceed your standard deduction if you do?

If so:

SALES TAX

You can enter the sales tax you paid for the car you purchased in 2016 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 new vehicle. 

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

Job Related Expenses

Only the amount of job-related expenses that are OVER 2% of your adjusted gross income get added to your list of itemized deductions, which still must exceed your standard deduction in order to make a difference on your return.  If you need to enter these, go to Federal>Deductions and Credits>Employment Expenses>Job-Related Expenses.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
Level 15

It says that I can write off sales tax on major purchases for a tax deduction. How do I do that?

To be able to use deductions and write them off they all have to more than the Standard Deduction everyone gets.  so if you don't have more than these amounts it's not worth even putting them in.

For 2016 the standard deduction amounts are:
Single 6,300 + 1,550 for 65 and over
HOH 9,300 + 1,550 for 65 and over
Joint 12,600 + 1,250 for each 65 and over
Married filing Separate 6,300 + 1,250 for 65 and over
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