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Yes, you can use non-taxable income when calculating a sales tax deduction. As mentioned above, that deduction is an itemized deduction, so you won't notice a change unless you are itemizing. From the IRS's sales tax deduction calculator:
Your income is the amount shown on your Form 1040, "Adjusted Gross Income" line, plus any nontaxable items, such as the following:
- Tax-exempt interest
- Veterans' benefits
- Nontaxable combat pay
- Workers' compensation
- Nontaxable part of social security and railroad retirement benefits
- Nontaxable part of IRA, pension, or annuity distributions. Do not include rollovers
- Public assistance payments
- And any other nontaxable items
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