I recently became a Texas resident and paid sales tax to Texas on a car I purchased. Is that state sales tax deductable from my federal income taxes (Texas has no state income tax)?
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I recently became a Texas resident and paid sales tax to Texas on a car I purchased. Is that state sales tax deductable from my federal income taxes (Texas has no state income tax)?
Michael B says:
Yes, on your Schedule A, which means you would need to itemize to receive the deduction. If you don’t itemize, your standard deduction might be greater than your itemized deductions.
December 29, 2009, 3:17 pmYou may want to contact a tax professional for your state taxes, as there are additional schedules you will need to file for the tax paid, as well as resident and nonresident state tax returns.
djarrett says:
Only if you can itemize deductions.
December 29, 2009, 3:17 pmHops Aficionado says:
YES
December 29, 2009, 3:37 pmbud68 says:
Yes. However this will only help you if you itemize instead of taxing the standard deduction.
December 29, 2009, 3:59 pmangbil19 says:
Yes, if you are already itemizing on a schedule A (itemized deductions) you can enter sales tax on it in the taxes portion. Your itemized deductions have to be over the standard deduction in order for it to count. If you have any questions, please feel free to contact me. I’ll be happy to help.
December 29, 2009, 4:25 pm