Skip to main content
January 27, 2024
Solved

Do I need to add total sales tax rate to my return?

  • January 27, 2024
  • 1 reply
  • 0 views
No text available
Best answer by DawnC

No, you don't have to enter any sales tax rates on your return.   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.  

 

For most people who itemize, the state and local income tax deduction gives them a bigger tax break.  However, the sales tax deduction may be more advantageous for taxpayers who:

 

  • Are residents of Alaska, Florida, Nevada, South Dakota, Texas, Washington, or Wyoming
  • Made a major purchase and therefore paid a lot of sales tax
  • Made frequent or substantial purchases in a state with high sales taxes

If you take the standard deduction (most people do) - you do not deduct either and can skip this section.  

1 reply

DawnC
DawnCAnswer
Employee
January 27, 2024

No, you don't have to enter any sales tax rates on your return.   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.  

 

For most people who itemize, the state and local income tax deduction gives them a bigger tax break.  However, the sales tax deduction may be more advantageous for taxpayers who:

 

  • Are residents of Alaska, Florida, Nevada, South Dakota, Texas, Washington, or Wyoming
  • Made a major purchase and therefore paid a lot of sales tax
  • Made frequent or substantial purchases in a state with high sales taxes

If you take the standard deduction (most people do) - you do not deduct either and can skip this section.  

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