To figure the amount of optional general sales tax you are eligible to claim, just answer a few questions and the system does the rest. First, go to the Sales tax Deduction Worksheet. This can be found by following these steps:
- Federal Section
- Select My Forms
- Itemized Deductions
- Taxes You Paid
- Add Sales Tax Worksheet
Enter your Zip Code and the number of days you lived there. If you moved during the year, enter the number of days at the first zip code and click Continue to save the information. Then, add another zip code to calculate the tax for the second address.
The entry for 'General sales taxes paid' is for the entry of sales tax on a large item such as a car. This amount will be added to the amount calculated by the program based on your income level and zip code. Enter only the amount of sales tax for the large item purchase.
What if I want to enter the exact amount of sales tax paid?
Select the 'Override' button if you wish to enter the exact amount of sales tax you paid based off of your receipts. You may be asked to provide these receipts to the IRS at a later time.
If you would like a second opinion to your sales deduction, you can do so through the IRS website (Sales Tax Deduction Calculator). Your entries are anonymous and the information is collected solely to allow you to determine your total allowable deduction. All entries are erased when you exit or start over.