You'll need to sign in or create an account to connect with an expert.
Your estimated sales tax for the year is calculated based on your local sales tax rate and your income. If you make a major purchase, such as your new vehicle, that is added in. This is a major break for the taxpayers who live in a state that has no state income tax.
You can deduct either the state income taxes you paid or the calculated sales tax - but you cannot deduct both. Turbo Tax will always deduct the tax amount that gives you the larger deduction.
To enter your sales tax amounts:You will be asked for various information, what your sales tax rate is, whether or not you had any major purchases, if you had nontaxable income, etc. (All things that can effect your sales tax deduction).
Work your way on through. You will be given a comparison of income tax deduction vs. sales tax deduction and can actually choose to take the lesser amount. (See the screenshot below)
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
Patti B Thomas
New Member
VB27
New Member
malvinchip
Level 1
SelenaP
Returning Member
Tax_Lego
Returning Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.