We will be itemizing this year and want to deduct sales taxes. Given the SALT limitation of $10k and a property tax of about $6k that I paid on my house, I only have ~4k left.
I did not keep all receipts this year, but due to large purchases, I do have enough receipts to exceed the $4k left before hitting SALT cap.
Is it safe to deduct the amount for the receipts I do have and just ignore the sales tax I spend on receipts I don't have?
Thanks.
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what do you mean by safe? the IRS can always ask for proof of any item on a tax return. since you have proof the worst that could happen in regards to your sales tax deduction is that the IRS will ask for proof. since the limit on SALT, there's no need to enter more in TT.
Can I still deduct all my sales taxes with receipts
Yes you can enter all receipts and then choose which gives you the better tax advantage, state income tax or slales taxes.
1. Click "Deductions & Credits" at the top of the page
2. Scroll down to "Estimates and Other Taxes Paid"
3. Click "Show More"
4. Find "Sales taxes"
5. Click "Start/Revisit"
6. Click "Continue"
7. You will arrive at a page giving you the option to "Enter all receipts"
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