dons2346 wrote:
Francesca Knowles wrote:
dons2346 wrote:
If your state does not collect an income tax, you are allowed to deduct whatever you paid in sales tax from your federal income tax filing.
To clarify, the sales tax deduction is available to everyone, no matter whether your State has income tax or not. Thing is, you can't deduct BOTH state income taxes and sales taxes...you have to choose between them if you live where both are collected.
Link to IRS page
My statement is correct, please read it again.
I did- and highlighted the words I attempted to clarify. I read that to say that this deduct is ONLY for those States that don't have an income tax. Not true. Residents of income-tax collecting States just have to choose which of the deducts to use.
Believe-you-me, there are lots of folks in other States that take advantage of that deduct- like someone that just paid a whoppin' sales tax on a new RV, for example. In many cases, that amount can far exceed the State income tax they've paid, so on their Federal taxes they can take the sales tax deduct instead of the income tax deduct.
This nationwide use of the deduction is another reason it gets put back into the code year after year, but never until after there's a whole lot of hand-wringing as to its looming "expiration"...
