This tool will provide an estimate of the about of a deduction you will be ablre to take. On Schedule A, Itemized Deduction, you have a choice of taking a deduction for the state and local taxes you paid (for example, state income tax withheld from wages) or the general sales tax you paid, whichever is greater.
The amount of the deduction you are allowed to take is based on the following four factors.
The abount of sales tax you pay is different depending upon where you live. Some states to not have any sales tax at all, while others have close to 10% sales tax. In addition, many counties and cities add an additional amount to the sales tax you pay. This tools can only calculate the sales tax deduction for taxpayers living in California.
Your spendable income is based on your total income, not just your taxable income. The more spendable income you have, the more you are likely to spend. Therefore, the IRS created a table with the allowable sales tax deduction based on spendable income and family size.
Finally, the IRS tables cannot take into account the sales tax you pay on large purchases that do not occur very often (for example, buying a car). If you make a large purchase, you can add the sales tax from that purchase into the calculation for the sales tax deduction.
Tax Year
Street Address
City
Zip Code
Family Size
Extra Sales Tax
1040, line 1z
Wages
1040, line 2a
Tax-exempt Interest
1040, line 2b
Taxable Interest
1040, line 3a
Qualified Dividends
1040, line 3b
Ordinary Dividends
1040, line 4a, 5a
Retirement Accounts (total amount received: 1099-R, box 1)
1040, line 6a
Social Security (total amount received: SSA-1099, box 5)
1040, line 7a
Capital Gains
1040, line 7
Self-employment Income
1040, line 8
Other Income
Total Spendable Income
0
Sales Tax Deduction
0