Entering state sales taxes

[WARP10]

After entering the tax on a major purchase (auto), TT only uses that number to calculate state sales taxes and doesn't add any other taxes (like from the IRS tables).

[rjs]

After you enter the sales tax on the car you get a screen with the heading "Major purchases results." The last line of that screen says "Deduction allowed" and shows the total amount of the sales tax on the car. But the wording is confusing. The amount it shows as "Deduction allowed" is not your total deduction. It's only the amount allowed for that major item. The total deduction for state sales tax on Schedule A line 5a in your tax return does include the amount from the IRS tables in addition to the tax on the car.

[WARP10]

Nope. Don't know if it's a difference in versions/platforms, but I never get a screen with "Major purchases result" or " deduction allowed" and Line 5A on Schedule A only has the tax paid on the car purchase. I had checked the box saying "estimate sales tax deduction using IRS tables" and the following for which I checked the "Sales tax deduction" box:

Which deduction would you prefer?

 State and local income tax deduction

 Sales tax deduction

 The larger deduction (Recommended)

[rjs]

On the screen with the heading "Enter major purchases" you entered the item type, description, cost, and sales tax. When you click Continue on that screen, what is the next screen that you get?

Are you using TurboTax Online or the TurboTax Desktop software? If you are using the desktop software, is it in Windows or on a Mac? What version are you using (Deluxe, Premier, etc.)? If you are using the desktop software, make sure you have the most recent updates.

[WARP10]

After entering info on the screen "Major Purchases", the screen that appears after hitting "Continue" is titled, "Nontaxable Income".

Version of TurboTax being used is the desktop version of TurboTax Deluxe for Windows(11). The software is up to date, as I have been saving/restarting everyday, hoping the updates for multiple "not available yet" or "available soon" issues.  My suspicion is there is some software change relating to the changes in the SALT deduction that have screwed this up.

[VolvoGirl]

It's working right for me on Windows Home & Business.  What's on the next screen "Let's find your biggest deduction"?  Is the Sales tax deduction box checked?   I entered  $3,200 sales tax on a car  and it said my Sales tax deduction is 4,400.  When I delete the car I get 1,200 for the IRS table.  You might need to keep going though all the screens to the end of the section.  

[WARP10]

Well, I know the Home and Business version is considerably more expensive than the Deluxe version, and I suspect it would be updated/fixed before the Deluxe verions. Nevertheless, when I do go through all the screens to complete that section, I'm taken to the summary page "Your 2025 Deductions & Credits". As for deleting the car, there's no way to actually delete that entry, other than to answer "no" to the "Major Purchases" screen. But this doesn't change anything, ends up still giving the number previously entered for the "Major Purchase".

[Opus 17 · Accepted solution]

Did you enter your income yet?  If you have not entered your income (because you don't have your W-2) then there won't be a standard amount calculated.  

[VolvoGirl]

All the Desktop versions use the same install file.  It’s your License Code that turns on the features in the higher versions.   There is only 1 update file when they put out updates.   On the Major purchase screen say YES which will give you a list of the item you entered.  You can delete the car there.   Then start the whole sales tax over from the beginning and enter your car again.   That should clear something out and fix it.   Go slow and read all the screens.   You must have checked a wrong box.   

To start Sales Tax over go to…

Federal Taxes

Deductions and Credits

Then scroll down to Estimates and Other Taxes Paid

Sales Tax- click the Start or Update button

[rjs]

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@WARP10 wrote:

The software is up to date, as I have been saving/restarting everyday, hoping the updates for multiple "not available yet" or "available soon" issues.

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Saving and restarting might not update the software. In TurboTax click Online on the menu bar at the top and select Check for Updates. After installing updates, if any, go through the entire sales tax interview again and see if Schedule A line 5a includes the amount from the IRS tables. Look at the actual form, not a summary screen in the TurboTax interview.

If Schedule A line 5a still does not include the sales tax from the IRS tables, go to forms mode and open the Tax and Interest Deduction Worksheet. On the worksheet, the table in line 1b, Sales Tax Per State of Residence, should show the sales tax from the tables in column (9), and line 1c should show the total sales tax from the IRS tables. The table in line 1d, Sales Tax Paid on Specific Items, should show the sales tax on the car in column (8), and line 1e should show the total sales tax for specific items. Line 1f should be the sum of lines 1c and 1e. Line 1i should be the same as line 1f, and the amount on line 1i of the worksheet should also be on Schedule A line 5a. If anything is not as I described here, where are the differences?

[WARP10]

Good catch! No W-2, but several 1099Rs which the software says "available soon" and doesn't process them. So I hadn't entered any other income. I went back and entered the SS 1099SM forms to get some income in and re-entered the sales tax info and it now appears to be correct.

Thanks.

[VolvoGirl]

Whew.  We should have thought of that earlier.   The 1099R won’t be ready until Jan 21.

[WARP10]

See answer above re: income not yet entered. Problem solved.

[WARP10]

Yeah, mine will be ready on the 16th. I know what they will be, so I was just going to enter them in advance and change later if there were any differences, but the software doesn't even let you into the 1099R section.