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March 5, 2021
Question

Should money sent through paypal friends and family be listed towards non sales tax?

  • March 5, 2021
  • 1 reply
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does money sent through PayPal friends and family for an item count for sales?

1 reply

March 9, 2021

Yes.  But it depends on whether you are taking the table amount based on income or the actual for large items

 

If you're itemizing, you get to choose between deducting your state and local income taxes or your state 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.

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