Sales Tax Deduction

[GJB52]

I did a significant home renovation/remodel during 2024.  I used a general contractor who paid the subcontractors for their labor and materials.  Then, the GC would bill me and I would pay him.  I am itemizing my deductions for 2024.  Can I claim the sales taxes on the invoices that the GC paid to the subs and then I paid to the GC as sales taxes that I paid?  Or can I only deduct sales taxes for invoices I paid directly to the vendors without going through the GC?  I hope my question is clear.  Thank you.

[SabrinaD2]

Yes, you can generally deduct the sales tax on your home renovation or construction if all of these conditions apply:

1. You're itemizing your deductions.
2. You're taking the sales tax deduction instead of the state/local income tax deduction.
3. The tax rate is equal to your state and local general sales tax rate.
4. You (or your contractor acting as your agent) purchased the building materials and paid the tax. The GC's invoices should usually clearly list the sales tax as a separate line item, not combined into a single charge.

If you’re taking the sales tax deduction instead of the state income tax deduction, here’s how to en...:

1. Open or continue your return.
2. Navigate to the sales tax section:
   • TurboTax Online/Mobile: Go to sales tax.
   • TurboTax Desktop: Search for sales tax and select the Jump to link.
3. When asked how you want to enter your sales tax info:
   • Choose EasyGuide if you want us to walk you through it.
   • Choose Enter All My Receipts if you’ve saved all of your receipts and can give the grand total.
4. TurboTax will guide through the process and help you complete the process to deduct the sales tax.