WA sales tax issues...

[Ebachy]

WA State Sales Tax varies by municipality. There is a base rate for unincorporated areas like where I live, but I shop in several different areas that each have a higher rate. Turbo Tax will not use large purchase amounts paid outside my very local area when where rates are much higher. Is there a work-around? Can I claim state sales tax at one of the higher rates (7.9% is/was the general rate for Pierce County) in the surrounding municipalities  (like Gig Harbor w/8.5ish% or Port Orchard w/9.0ish%)?

[Terri Lynn]

Hello Ebachy!

Yes, there is a way to manually enter a different amount of sales tax.  

Here are a few things to keep in mind about the potential sales tax deduction and how you could potentially make an adjustment to the amount:

• You have a choice between deducting state/local income taxes or state/local sales taxes - you cannot deduct both.
• -You can only claim these deductions if you are itemizing deductions on your tax return, not if you take the standard deduction.
• To deduct sales tax, you can either total your receipts for purchases made during the year or use the IRS sales tax tables based on your location and income level.
• If using the IRS tables, you can add any sales taxes paid for major purchases like a vehicle, boat, plane, etc. to the amount from the given tables.
• For 2018-2025, there is a $10,000 cap on the total deduction for all state and local taxes (including income, sales, real estate, etc. Any amount over $10,000 cannot be deducted.

For more information on this topic, please see: 

• Sales Tax Deduction 
• How to Write Off Sales Taxes 
• Sales Tax Deduction Calculator 

Please feel free to reach backout with any additional questions or concerns you might have!

Have an amazing rest of your day!

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