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February 20, 2022
Question

I'm in a state that doesn't collect income taxes so the sales tax deduction (I'm itemizing) is best. What would cause my estimated state sales tax deduction to be zero?

  • February 20, 2022
  • 1 reply
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I'm using the TurboTax EasyGuide, have a sales tax rate of 8.25%, there is no Nontaxable Income, but my state sales tax deduction keeps calculating as zero.

1 reply

AliciaP1
February 21, 2022

The SALT (State and Local Tax) Deduction is limited to $10,000 for all filing status except married filing separate($5,000) for the tax year 2021.  This amount includes the combined total of your sales tax, real estate tax, and personal property tax amounts.  If you have already entered your real estate and personal property tax amounts and they equal or exceed $10,000(or $5,000 MFS), your sales tax deduction will be zero.

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