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April 6, 2024
Question

Other Taxes Paid>Sales Tax

  • April 6, 2024
  • 1 reply
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I live in a state with no income tax.  I made several major purchases in 2023 & my calculated Sales Tax Deduction is much greater than the Estimated Sales Tax Deduction.  I ran the numbers & the amount of my Federal Refund did not change.  I do not see the benefit of entering this info at all.  The last screen indicates:  Based on what you told us, the sales tax deduction will give you the maximum refund on your taxes???

    1 reply

    Employee
    April 7, 2024

    SALES TAX

    You can enter the sales tax you paid in 2023 by going to Federal>Deductions and Credits>Estimates and Other Taxes Paid> Sales Tax.  You will be asked if you paid sales tax on a major purchase, and you will be able to enter the sales tax you paid for your major purchases.

     

    Sales tax is an itemized deduction.  Unless you have enough other itemized deductions to exceed your standard deduction the sales tax will have no effect on your tax due or refund.

     

    “Major purchases” that you can enter for the sales tax deduction include:

    Motor Vehicles (cars, trucks, motor homes, RV’s, sport utility vehicles and off-road vehicles

    Aircraft or boats

    Mobile homes

    Manufactured housing

    Building materials for major home improvements

    You cannot deduct: furniture, jewelry, home electronics such as TV’s or computers

     

    https://ttlc.intuit.com/questions/1901222-which-deduction-should-i-choose-sales-tax-or-income-tax

    https://ttlc.intuit.com/questions/2566624-how-much-sales-tax-did-i-pay-last-year

    https://ttlc.intuit.com/questions/3148443-how-do-you-define-major-purchase-or-major-item-for-the-sales-tax-deduction

    https://ttlc.intuit.com/questions/1900791-how-do-i-find-my-local-sales-tax

    https://ttlc.intuit.com/questions/2566624-how-much-sales-tax-did-i-pay-last-year

     

     

    States with no sales tax:  Alaska, Delaware, Montana, New Hampshire and Oregon

    **Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**