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February 18, 2025
Question

I paid over $2000 in sales tax for improvements on my home. How do I deduct that?

  • February 18, 2025
  • 1 reply
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Updated windows and doors and reinsulated the attic.

    1 reply

    February 18, 2025

    If you're itemizing, you get to choose between deducting your state and local income taxes or your state and local sales taxes. You can't claim both and you can't claim either one if you're taking the Standard Deduction.

     

    1. Open your return 
    2. Go to Federal 
    3. Go to Deductions and Credits
    4. Scroll down to Estimates and Other Taxes Paid.
    5. Select Sales Tax 

    What sales tax payments can I claim on my federal taxes?

     

    If are trying to claim the tax credit, the following energy efficient home improvements are eligible for the credit. 

    “Qualified energy efficiency improvements” consisting of certain “energy efficient building envelope component[s]” that satisfy the Energy efficiency requirements and consist of:

    • exterior doors (30% of costs up to $250 per door, up to a total of $500 if multiple doors are installed);
    • exterior windows and skylights (30% of costs up to $600); and
    • insulation materials or systems and air sealing materials or systems (30% of costs up to $1,200).

    To claim the credit:

    1. Open your return 
    2. Go to Federal 
    3. Go to Deductions and Credits
    4. Select Home Energy Credits
    5. Select  Yes on the Energy Efficient home Improvements screen
    6. Answer the questions and continue to the screen Did you have any of these qualified Energy Efficient Improvements in 2024?

     

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