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Sales Tax Paid

With respect to Sales Tax Paid, has anyone utilized a formula or calculation method other than the sales tax rate provided in Turbo Tax?  

A taxpayer can provide actual receipts which is acceptable. 

Without digging up actual receipts and not relying on the Turbo Tax sales tax rate and calculation for state/city, is another method for identifying and more closely determining actual sales tax paid in 2021?

 

 

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2 Replies

Sales Tax Paid

rjs
Level 15
Level 15

Sales Tax Paid

You can't just use any method that you like. The tax law gives you a choice of two methods to determine your deduction for sales tax. One method is to use the actual amount you paid, as documented by your receipts. Adding up your receipts is the only method allowed for determining the actual sales tax you paid.


The other method is to use the Optional State Sales Tax Tables that the IRS publishes in the Instructions for Schedule A. The TurboTax calculation uses the IRS sales tax tables. The IRS Sales Tax Deduction Calculator that DoninGA referenced uses the same IRS tables.


Those are the only methods allowed for calculating your sales tax deduction. You have to pick one or the other.

 

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