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by lazyninja987 1169 days ago
what is 'deduct sales tax' mean? sorry, i am new to taxes. can you add more info? is it something an individual can use?
1 comments

Yes, in the US at least, you can deduct state and local taxes from your taxable income. Most people use it to deduct state/local income and property taxes, but you can also deduct the amount of any sales tax paid. (Since 2017, though, there's a $10,000 cap on the total amount of state and local taxes you can deduct. This cap will fortunately expire in 2025 if -- fingers crossed -- it's not renewed.)

The caveat is that if you deduct sales tax, you are then not allowed to deduct state/local income tax. And of course it can be quite a bit more work to keep track of all the sales tax you pay in a year, vs. income tax.