Question

Sales Tax Deduction

Forum|Forum|3 years ago
February 8, 2023
2 replies
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How does TT calculate the sales tax deduction for Schedule A? I used the IRS sales tax calculator for 2022 and the amount was less than TT. Also, the tables listed is the Schedule A document provided different number. Just want to ensure the TT amount is correct. Total tax for me is 8.3%. It would also be nice to know the calculation IRS uses to calculate the amount.

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BillM223

"used the IRS sales tax calculator for 2022" - how did you do this - IRS The Sales Tax Deduction Calculator is not yet ready (see the IRS page). Check the page which appears to say that you would be using the 2021 sales tax calculator.

To know how the IRS calculates sales taxes, you can see the State and Local General Sales Tax Deduction Worksheet—Line 5a in the Schedule A Instructions.

Does that solve the issue?

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S

SC58Author

Where does it explain the calculation (formula) used to to determine the amount of sales tax that can be deducted?

B

BillM223

To know how the IRS calculates sales taxes, you can see the State and Local General Sales Tax Deduction Worksheet—Line 5a in the Schedule A Instructions.

Did this not tell you how to determine the amount of sales tax that can be deducted? Or are you asking something else?

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S

SC58Author

I saw the IRS Sales Tax Deduction Calculator for 2022 is active; however, the amount calculated by Turbo Tax is substantially higher??? Already filed my return, hope Turbo Tax makes the correction for others who have not filed.

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BillM223

I just tested a test return against the IRS Sales Tax Calculator - the results were identical.

There are a number of factors that go into the calculation: state and local tax rate, AGI, non taxable income (like part of Social security that is not taxed), certain large purchases (like automobiles), and so on. At the end of the IRS Sales Tax Calculator is a screen that summarizes what you entered.

Please share with us (if you will) what you entered on the IRS page and the results that you got. Also tell us where you live and did you move during the year?

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