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February 21, 2023
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Sales tax information

  • February 21, 2023
  • 1 reply
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Hi,

Turbo tax asking for "Sales tax information"?

I dont have receipts for all the taxes paid last year. can you please explain what this is for? what should i enter for this questions. What happens if i don't select anything.

 

 

    Best answer by HopeS

    If you are taking the Itemized Deductions instead of the Standard Deductions on your Form 1040, then you can deduct sales tax as part of your Schedule A deductions.

     

    You can choose between deducting your state and local income taxes (SALT) 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. However, be aware that 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.

     

    If you’re taking the sales tax deduction, here’s how to enter the sales tax you paid:

    1. Open or continue your return
    2. Search for sales tax and select the Jump to link in the search results
    3. When asked how you want to enter your sales tax info:
      • Choose EasyGuide if you want us to walk you through it
      • Choose Enter All My Receipts if you’ve saved all of your receipts and can give the grand total

     

    For additional information regarding Sales Tax please review the links below:

     

    Sales Tax Deduction

     

    @santhosh1987

    1 reply

    HopeS
    HopeSAnswer
    February 21, 2023

    If you are taking the Itemized Deductions instead of the Standard Deductions on your Form 1040, then you can deduct sales tax as part of your Schedule A deductions.

     

    You can choose between deducting your state and local income taxes (SALT) 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. However, be aware that 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.

     

    If you’re taking the sales tax deduction, here’s how to enter the sales tax you paid:

    1. Open or continue your return
    2. Search for sales tax and select the Jump to link in the search results
    3. When asked how you want to enter your sales tax info:
      • Choose EasyGuide if you want us to walk you through it
      • Choose Enter All My Receipts if you’ve saved all of your receipts and can give the grand total

     

    For additional information regarding Sales Tax please review the links below:

     

    Sales Tax Deduction

     

    @santhosh1987

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    February 21, 2023

    Just to reconfirm, if i chose to go with standard decuction, i can leave the sales tax info blank?

    February 21, 2023

    Correct.  If you are taking the standard deduction then you have no need for sales tax information.

     

    @santhosh1987 

    **Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"