I had a major purchase last year, and it will not allow me to deduct the sales tax. How do I deduct the tax? It says it has to be the same tax rate. It is, 6% state on the whole purchase and 2.5% local on the first 5k
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You can enter two lines for your purchase, one would be for the full price at 6% and a second for $5000 at 2.5%.
Thanks, I just tried that. It still does not allow me to deduct the tax paid. It says because it is less that the previously 8.5 percent entered in the total local and sales tax portion it is not allowed.
I am not sure why this doesn't work for you, I have just tried it and I had no problems.
As a workaround, you can choose the option to Enter all my receipts instead of Easy Guide.
You can add together your standard amount, and the tax on the vehicle purchase and just enter the total.
You can either use the standard amount TurboTax calculated, or you can check the standard amount on the IRS website.
Click here to access the IRS sales tax calculator.
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