Can You Claim Sales Tax As A Deduction?

It has to be noted that you can only write off your income or sales taxes if you itemize your personal deductions. In other words, if you use the usual personal deduction, you cannot deduct sales taxes. Each state or locality uses different methodologies for determining your local optional sales tax deduction depending on what is taxed and how much it is taxed. "When the local tax base is the same as the state tax base and there is just one local sales tax rate throughout the state - The local sales tax amount can be included with the state table using a combined rate on the same items," reads the Internal Revenue Service website. "When the local tax base is the same as the state tax base, but the local sales tax rates vary throughout the state - The local sales tax amount can be derived from the state amount using the ratio of the local rate to the state rate. "When both the local tax bases and the local sales tax rates vary throughout the state - The local sales tax amount must be derived independently from the state amount." The IRS informs that your total deduction for state and local income, sales and property taxes is limited to a combined, total deduction of $10,000, which is $5,000 for married taxpayers filing separately. You can figure the amount of state and local general sales tax you can claim by using the IRS's Sales Tax Deduction Calculator. Read Also : Where does Margot Robbie get the 'beer shower' idea from?