Can I claim the sales tax deduction?

No matter what moves you made last year, TurboTax will make them count on your taxes. Whether you want to do your taxes yourself or have a TurboTax expert file for you, we’ll make sure you get every dollar you deserve and your biggest possible refund – guaranteed. Our partners cannot pay us to guarantee favorable reviews of their products or services. Ask your local government (city or county) what the tax rate is for your area. The following TurboTax Online offers may be available for tax year 2024. Intuit reserves the right to modify or terminate any offer at any time for any reason in its sole discretion.

TurboTax makes this step easy by automatically importing your W-2s, 1099s, and bank transactions. I was hoping there was something like mint which would look through all my transactions and determine exactly how much sales tax I was charged. I have used the IRS recommended amounts which are complete BS.

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You can also reach out with tax-related questions year-round with no appointment necessary, and at no additional cost. TurboTax offers several ways to file your business taxes, depending on your level of tax expertise, budget, company type, and location. People in higher tax brackets usually benefit more from the SALT deduction and itemized deductions in general.

• States that impose sales taxes generally impose an equivalent amount of use tax for out-of-state purchases on which no sales tax has been collected.
• As with Live Assisted Business, you’ll get on-demand tax support throughout the year at no additional charge.
• Unless otherwise stated, each offer is not available in combination with any other TurboTax offers.
• If not, then you can still itemize but are probably better off claiming the Standard Deduction where you cannot deduct the sales tax.
• The platform will remember the information you previously entered.

In New Hampshire, you only have to pay taxes on interest and dividends. With the introduction of the Tax Cuts and Jobs Act (TCJA) in 2017, a few changes were made to the SALT deduction. The SALT cap was introduced, which is a limit on the amount you can deduct that’s in effect for tax years 2018–2025. Get unlimited advice, an expert final review, and your maximum refund, guaranteed with TurboTax Live Assisted Basic. TurboTax software can be downloaded directly from the TurboTax website, or purchased from popular retailers like Costco and Best Buy, both online and in-store. Profit and prosper with the best of expert advice – straight to your e-mail.

TurboTax does not store all local tax rates since they can constantly change. Carla Ayers joined Kiplinger in 2024 as the E-Commerce & Personal Finance Editor. She earned a master’s degree in Integrated Marketing Communications from Eastern Michigan University.

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• By taking the time to enter this information accurately, you can reduce your taxable income, receive valuable deductions, and lower your tax liability.
• The limit imposed by the TCJA took effect during the 2018 tax year and will end after the 2025 tax year.
• In most conversations, when we talk about taxes, we’re pretty focused on the Federal Rates, most of us painfully aware of how much of that next dollar earned will be shared with Uncle Sam.
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As long as you are able to claim the itemized deduction instead of taking the standard deduction, you may be eligible for the SALT tax deduction. Additionally, if you live in a county or municipality that charges an additional rate of tax, such as New York City, you can increase your sales tax deduction even more. TurboTax will take care of these calculations to ensure that you get the best deductions for your specific situation. Fortunately, you can still take advantage of other itemized deductions to reduce taxable income and save on your federal taxes. Working with a tax expert is the best way to make sure you’re claiming any and all deductions and credits you qualify for.

If you’re paying any of these state and local taxes, you can claim the amounts paid during the year as an itemized deduction on your tax return. You can decide whether you want to deduct state and local income taxes or state and local general sales taxes. One important decision to make on your tax return, specifically, your ‘Schedule A – Itemized deductions’ is between deducting your state income tax or sales tax paid throughout the year. The lucky folk in Alaska and New Hampshire enjoy paying no state income tax and no sales tax, so that section of Schedule A comes up blank. But those in Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming all have no income tax, and therefore should take the sales tax deduction. The IRS allows you to keep all of your receipts throughout the year and claim the actual amount, or you may use the online calculator for the IRS approved amount based on your income.

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Generally, for most services, states will say the situs is the ship-to location. As such, tax will be calculated based on the location where services are performed. You also need to know where the tax applies (tax point), so you’re always calculating the correct rate, especially in states with local tax.

Products and services subject to sales tax

Missing a deadline or making a mistake could lead to costly penalties. Consider consulting with a tax expert to ensure you’re meeting all sales tax obligations and to get help with specific tax situations. The most accurate method is to add up the sales tax paid on each of your receipts. You can claim any sales tax you paid, regardless of where you what is sales tax information on turbotax paid it.

In this article, we’ll explore how to enter sales tax information in TurboTax and how it can help you maximize your tax savings. I’ve never been able to surpass the standard deduction, even though I own my own home. Is it worth the time and effort of keeping every single receipt and deducting sales tax? I’m filing single with no dependants and I live in a state that does NOT have state income tax. States that impose sales taxes generally impose an equivalent amount of use tax for out-of-state purchases on which no sales tax has been collected.

How much does a small business have to make to file taxes?

They’ll keep you updated throughout the process, and you can contact them with questions or concerns anytime. As with Live Assisted Business, you’ll get on-demand tax support throughout the year at no additional charge. At the end of the instructions to the Schedule A attachment you will find sales tax tables for each state. Find your state and determine the allowable sales tax deduction for your range of income.

This would include your state’ssales tax rate plus any additional local sales tax charged for your locality. As of 2024, five states, Alaska, Delaware, Montana, New Hampshire and Oregon, do not have a sales tax. Since sales taxes are based on fixed percentages, the only way to avoid paying it is to reduce your consumption or to make all of your purchases in one of the five states that don’t impose it. Sales tax returns are typically filed online through the state’s tax portal. You’ll need to enter your total gross sales, taxable sales, exempt sales, and the amount of tax collected.

If you live in one area, but work in different area or multiple areas with different tax rates. Fees are a set % or dollar amount that are payable regardless of the purchaser’s sales tax exemption status. State law dictates if fees are included in the tax base or not. This applies in both origin-based and destination-based states. Some states have special rules regarding the sourcing of service-based transactions.

If you’re itemizing, you get to choose between deducting your state and local income taxes or your state and local sales taxes. Most people are familiar with sales tax — that extra percentage stores collect from customers in many states. But if you sell your products online, you may — or may not — have similar sales-tax-collection duties. As you can see, entering your sales tax information in TurboTax can be a simple and effective way to maximize your tax savings. By taking the time to enter this information accurately, you can reduce your taxable income, receive valuable deductions, and lower your tax liability.

Sales taxes at the local level in addition to the state level, can make it difficult to determine the proper sales tax for some transactions. Transactions which occur between locations in two different states, are sourced to the destination. When itemizing, you can add sales tax paid on big-ticket items like cars or boats to your state’s amount from the IRS tables, potentially increasing the amount you can deduct. TurboTax will calculate this for you and recommend the best choice.

Features like document import and deduction-finding tools can help maximize your refund, but it’s important to consider whether you actually need the higher-tier upgrades or expert help. Not every filer will benefit from these paid add-ons, so review your tax situation carefully before choosing a version. Finally, users can file state tax returns through TurboTax for an additional fee in most cases. However, some states offer free filing options, so it’s worth checking local requirements before paying for the add-on. Let a local tax expert matched to your unique situation get your taxes done 100% right with TurboTax Live Full Service. Your expert will uncover industry-specific deductions for more tax breaks and file your taxes for you.