You'll need to sign in or create an account to connect with an expert.
It makes noo difference if you cannot itemize. If you do itemize then you can choose either to deduct state tax or sales tax - but not both.
For 2018 - 2021 many taxpayers that itemized in the past will find that they can no longer itemize because the standard deduction has doubled so all of their itemized deduction s no longer exceed the standard deduction.
Only if all itemized deductions exceed the standard deduction will it be of benefit.
Not all itemized deductions count the full amount. Medical expenses are reduced by 7.5% of AGI so if your AGI is $30,000, for example, then only medical expenses more than $2,250 would be an itemized deduction.
The 2018 tax law also caps the total of Sales tax OR State and local income tax, Property (real estate and personal property) taxes at $10,000.
Mortgage interest on loans after Dec 16, 2017 may be limited.
The Mortgage must be secured by the property to qualify.
Interest on home equity loans and lines of credit are deductible only if the borrowed funds are used to buy, build, or substantially improve the taxpayer’s home that secures the loan.
You can check the actual amount of itemized deductions by using the Search Topics for "itemized deductions, choosing" (under "My Account, Tools" in the online versions). Click on "Change my deduction". That will display the actual amount of itemized deductions vs. the standard deduction. (Be sure to uncheck "Change my deduction" after checking it so you do not lock in the wrong deduction.
2021 standard deductions
$12,550 Single
$18,800 Head of Household
$25,100 Married Jointly
Add an additional $1,700 for over age 65 or blind
But to enter it
Enter Sales Tax under
Federal Taxes or Personal (Home&Business)
Deductions and Credits
Then scroll down to Estimates and Other Taxes Paid
Sales Tax- click the Start or Update button
You might see a screen saying
Sales Tax and Income Tax - Click Continue with Sales Tax
Then click on EasyGuide
Enter your State and Dates you lived there
Enter your Sales Tax Rate as a whole number like enter 7% as 7.00 or 7.5% as 7.50
Then enter any major purchases
When you are done it will show you a summary screen of places you lived - click Done
Then it will ask if you had any Nontaxable Income to increase your Sales Tax Deduction Yes or No
You can only add
1. A Motor Vehicle
2. Aircraft or Boat
3. A Home
Major purchases do NOT include:
-Furniture
-Jewelry
-Home electronics
-Appliances
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
LKarkos
Level 2
mcdsys
Level 2
user17736315064
New Member
lafmichelle
New Member
alicetheswan
New Member