What is a sales tax

Forum|Forum|2 years ago
February 17, 2024
1 reply
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Im 22 what should I put in there??

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JotikaT2

It depends.

The sales tax deduction is based upon the amount of sales taxes you pay on most things purchased. It could be taxes paid on a car to taxes paid on every day items that are broken down on your receipts.

On your tax return, you can only claim the amount for sales taxes or income taxes paid on your earnings, but not both. It's also important to note the potential deduction for taxes is also capped at $10,000 currently due to SALT deduction limitations. Please see this FAQ for additional information.

You can only deduct sales taxes (or state and local income taxes) if the total exceeds the amount of your standard deduction. In most cases, the standard deduction provides a higher tax benefit than itemizing. If this applies to you, you may not be able to deduct sales taxes. See this link for more details on differences between taking the standard deduction or the itemized deduction.

The best option is to enter your sales tax amount. TurboTax will provide the deduction that results in a higher tax benefit for your particular situation.

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xmasbaby0

Employee

If you are asking what sales tax means--- I wonder if you live in one of the states that does not even have a state sales tax. If you live in a state with sales tax, you will notice that tax is added to the amount you pay for various goods and services. When you buy a sweater----was sales tax added to the price? When you eat in a restaurant---is tax added to the bill? Do you see sales tax on your receipts for things you buy?

And...you say you are 22. Unless you have itemized deductions like mortgage interest, high medical expenses, charity donations, etc. entering sales tax will have no effect at all on your tax due or refund.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**