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Don't forget the Federal Income tax deduction for sales tax

Posted by kudzu9 (My Page) on
Sun, Feb 11, 07 at 18:20

Congress extended the provision to deduct state and local general sales taxes for 2006 AFTER Schedule A forms and instructions were already printed up. If you itemize, and you live in a state where there are no state income taxes, this is a particularly nice deduction; if you live in a State where there are state/local income taxes, you can choose which deduction you want. If you are eligible to take the sales tax deduction, it goes on line 5 of Schedule A ("State and local income taxes"). I'm posting about this because I almost overlooked it myself. I'm retired, and it still increased my deductions by more than $1000.

Now if each of you who would have overlooked this will just send me 10% of the additional amount you saved on your taxes, I'll be happy!

Here is a link that might be useful: Publication 600

Follow-Up Postings:

RE: Don't forget the Federal Income tax deduction for sales tax

I sure did not overlook that one. We built a new home last year and the builder charged us sales tax! I was holding my breath to see if Congress was going to renew the deduction.

RE: Don't forget the Federal Income tax deduction for sales tax

don't forget in addition to your "personal" deduction
you can also deduct the sales tax on auto's, boat's and rv's

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