I am asking since I have a whole plastic bag of physical paper receipts from the purchases I have made during 2023. And I do not think it would hurt to ask as I am hoping to maximize my income tax as much as possible. Thank you sincerely.
Purchases aren't considered income, but you may be able to get a State and Local Tax (SALT) Deduction on your Federal Tax return if you itemize your deductions. If you live in a state that you pay sales taxes and the sales taxes that you paid are more than the state income tax that you paid, you can use the sales taxes as the SALT deduction.
For more information, review the TurboTax article Which deduction should I choose, state and local income tax or sales tax?
For more information on itemized deductions, review the TurboTax articles What Are Itemized Tax Deductions? and Standard Deduction vs. Itemized Deductions: Which Is Better?
If you are a W-2 employee, your work-related expenses are not deductible, and almost nothing else that you buy on a regular basis is deductible either. (There are some special categories, like energy-efficient improvements to your home, and maybe one or two other things.)
If you are self-employed, you can deduct ordinary and necessary expenses for your self-employment. You really should have some way of organizing your expenses rather than dumping everything in a bag. Ordinary and necessary expenses depend on what you do. If you buy and sell clothes, your expenses might be inventory, advertising, shipping and credit card fees. If you drive for ride share or delivery services, your expenses are probably just your car expenses.
If you live in a state that does not have income tax, you may be able to deduct your general sales tax (state and local sales tax). You have the option of deducting the actual taxes you can prove with receipts, or using standard amount calculated for you by the IRS based on your local tax rates and your personal income. Usually, the IRS method is slightly more generous than the receipt method, but you can add up your sales taxes if you want to try it. Note that only general sales tax is deductible, not special taxes. For example, the general sales tax rate in Richmond Virginia is 6%. There is an additional 7.5% meals tax on restaurant and take out meals, and an extra 11% hotel tax. Even if you bought meals and stayed in hotels in Richmond, you could only deduct the 6% general sales tax, not the others.