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February 4, 2021
Question

Sales Tax Deduction. What is the max amount of Nontaxable Income that can be reported before raising an IRS Red Flag?

  • February 4, 2021
  • 1 reply
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I live in NV and retired this year.  My annual expenses were comparable with prior years, but my Income was much lower - therefore my TurboTax-calculated Sales Tax Deduction was much lower.  I lived off of my Savings, so I'm thinking on entering $57K into the Nontaxable Income question to be representative.  What is the amount that can be entered here before risking an IRS audit?

1 reply

February 4, 2021

Sales tax is a relatively small deduction as far as itemized deductions are concerned, so the income amount you mention should not result in much scrutiny.

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