Are we all entitled to the 2022 sales tax deduction?

Sales tax is an itemized deduction.  It has no effect at all unless you have enough other itemized deductions to exceed your standard deduction.    Other itemized deductions could include mortgage interest, medical expenses, property tax, charity donations, etc.

STANDARD DEDUCTION

Many taxpayers are surprised because their itemized deductions are not having the same effect as they did on past tax returns.  The new higher standard deduction and the elimination of certain deductions, as well as the cap on state and local taxes have had a major impact since the new tax laws went into effect beginning with 2018 returns.

Your itemized deductions have to be more than your standard deduction before you will see a change in your tax owed or tax refund.  The deductions you enter do not necessarily count “dollar for dollar;” many of them are subject to meeting  tough thresholds—medical expenses, for example, must meet a threshold that is pretty hard to reach. (Only the amount that is MORE than 7.5% of your AGI counts)   The software program uses all the IRS rules that apply to the expenses you enter, and it tells you if you have enough to use your itemized deductions or if using the standard deduction is more advantageous for you.  Under the new tax laws, some deductions have been capped—there is a $10,000 limit to the itemized deductions for state, local, property and sales taxes.

Your standard deduction lowers your taxable income.  It is not a refund.  You will see your standard or itemized deduction amount on line 12 of your 2022 Form 1040.

2022 STANDARD DEDUCTION AMOUNTS

SINGLE $12,950  (65 or older + $1750)

MARRIED FILING SEPARATELY $12,950  (65 or older + $1750)

MARRIED FILING JOINTLY $25,900  (65 or older + $1400 per spouse)

HEAD OF HOUSEHOLD  $19,400  (65 or older +$1750)

Legally Blind + $1750

No, there's not really a minimum.  However...

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

There are two methods for coming up with the amount of sales taxes you paid during the year: add up all your receipts (actual expenses) or use the predetermined IRS amount which is based on your sales tax rate.

If you take the predetermined amount, you get to add the sales taxes you paid for major purchases, like a car, truck, RV, or boat. We'll guide you through this process in the Deductions & Credits section.

Keep in mind: For tax years 2018 through 2025, the SALT deduction (which includes sales tax) is capped at $10,000. That means if the combined total of your sales tax, real estate tax, and personal property tax amounts to $15,000, you can only deduct $10,000 maximum.

TurboTax Help FAQ: Can I claim the sales tax deduction?

The Sales Tax itemized deduction is mainly for states that don't have an income tax  so there's no state tax to deduct.