Your Tax Question - 050

Dear John, is it true that I can deduct the sales tax that I paid through the year instead of the State taxes I paid on my income? Jim

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Hi Jim,

Yes, it is true. Instead of deducting the amount of taxes that you paid to the State on your Schedule A, you may make the deduction with the sales taxes that you paid through the year. This is done by a table that the IRS provides or the actual amount that you paid assuming that you have kept all the receipts as evidence. This approach to the deduction makes sense if you have made major expenses this year such as a car, RV, and/or addition to your home. Compare the allowed amounts and use what gives you the best deduction.

If you need help with this I am always looking for new clients - Email me.

Best,

John