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February 9, 2021
Question

If i am tax exempt in the state of Texas, where do i enter the purchases from the year when doing my return?

  • February 9, 2021
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February 9, 2021

The TurboTax program will calculate your allowable sales tax deduction based on income figures in your return, unless you decide to enter your actual receipts and/or have made major purchases that you want to include. The program uses sales tax tables from the IRS to calculate the allowable sales tax deduction based on your income.

 

No individual is exempt from sales tax, so you would have paid sales taxes on personal purchases of goods and services required in the daily course of your life. The EasyGuide option in the Sales Tax interview will calculate what your sales tax deduction would be

 

Certain entities are exempt from paying sales tax (e.g. charitable organizations, wholesale businesses, government agencies) , but only for purchases related to their tax-exempt activities.