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I keep getting prompted to enter my sales tax rate on the Schedule A Tax and Interest Deduction Worksheet. I think I clicked yes on something in error.

 
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1 Reply
JohnB5677
Employee Tax Expert

I keep getting prompted to enter my sales tax rate on the Schedule A Tax and Interest Deduction Worksheet. I think I clicked yes on something in error.

There will not be a problem.  If you don't intend to complete the Itemized deduction section it will automatically default to the Standard deduction.  

 

If you do intend to take Itemized deductions:

You can calculate the Federal Sales Tax deduction for your State you can use this IRS tool. Use the Sales Tax Deduction Calculator

 

You can also visit the Tax Foundation site State and Local Sales Tax Rates, 2024 to get the percentage.

  • Scroll down the page to the map.

There have been many changes to the Itemized deduction limitations.  Here are some of the limitations to Itemized deductions

  • Medical expenses: You can only deduct the amount of your medical and dental expenses that is more than 7.5% of your AGI.
  • Mortgage Interest:  You can deduct the interest you paid during the tax year on the first $750,000 of your mortgage debt for your primary home or a second home. If you are married filing separately, the limit drops to $375,000.
  • Local Taxes: Your deduction of state and local income tax, general sales, and property taxes is limited to a combined total deduction of $10,000 ($5,000 if married filing separately).
  • Business expenses for employees is no longer allowed.
  • There may be other limitations that are not listed.
  • Finally, the total of all deductions must be greater than the Standard deduction.

The standard deduction amounts for 2024 are:

  • $29,200 – Married Filing Jointly or Qualifying Surviving Spouse
  • $21,900 – Head of Household
  • $14,600 – Single or Married Filing Separately

For 2024, the additional standard deduction amounts for taxpayers who are 65 and older or blind are:

  • $1,950 for Single or Head of Household
  • $1,550 for married taxpayers or Qualifying Surviving Spouse

 

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