Tax Deductions and Credits What is the State and Local Sales Tax Deduction? Read the Article Open Share Drawer Share this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Pinterest (Opens in new window)Click to print (Opens in new window) Written by Modified Jul 12, 2019 2 min read The State and Local Sales Tax Deduction expired in 2011, but was extended thanks to the American Taxpayers Relief Act of 2012. Consequently, certain taxpayers will still benefit from this important tax deduction. What is the state and local sales tax deduction? Many people are familiar with the fact that state and local tax payments, including real estate tax, property tax, and state income tax are tax deductible. A few years ago, Congress added sales tax to the list of deductible state and local taxes. However, it did so with a bit of a hitch: taxpayers must choose between deducting state and local income tax or state and local sales tax-not both. Taking the State and Local Sales Tax Deduction may be beneficial to you if you live in a state that doesn’t collect state income taxes or if you made large purchases and paid substantial local sales tax. How do I calculate my state and local sales tax deduction? To determine your state and local sales tax deduction, you can keep all of your receipts during the year and then, come tax time, add the sales taxes collected on all of them. Even if you don’t have all of the receipts TurboTax will help you estimate the value of your state and local sales tax. If you have state income taxes that were withheld from your paycheck or that you paid and state and local sales taxes, TurboTax will automatically select the higher deduction for you, ensuring you keep more money in your pocket. What else should I consider when thinking about the state and local sales tax deduction? If you have relatively low income compared to spending or live in a state without an income tax, be sure to deduct your state and local sales tax deduction. TurboTax will walk you through the necessary questions and help you get this tax deduction if you’re eligible. Previous Post Different Ways to Give to Charities You Love Next Post 8 Most Missed Tax Deductions Written by More from 2 responses to “What is the State and Local Sales Tax Deduction?” Wow! Finally I got a blog from where I be capable of actually take useful data regarding my study and knowledge. Reply My Federal taxes went from pending to in line. What does in line mean? Also if it is just the Federal that is having an issue why Is the State still Pending and has been for 2 weeks Reply Leave a Reply Cancel reply Browse Related Articles Income and Investments How to Make a Budget (and Stick to It) Income and Investments 5 Ways to Increase Your Credit Score This Summer Tax Tips Donate Your Wedding Dress for a Tax Deduction Tax Planning 5 Simple Tax Tips for End-of-the-Year Giving Deductions and Credits Giving Alert! Thrift Stores, Charities Need Your (Tax D… Income and Investments Listen Now: Friends with Tax Benefits Tax Deductions and Credits Did You Owe This Tax Season? Seven Tips to Lessen the … TurboTax News Show Us How You #TurboTaxAndRelax for a Chance to Win $… Taxes 101 First Time Taxpayers: Your Go-to Guide For Filing Your … Health Care What is a Health Care Reform Tax Penalty [Calculator]?