Previous Entry Share Next Entry
Tax Tip for My Texas Friends
pokemon
unwiredben
I finally finished up my taxes tonight and got them all printed out. However, when reviewing my itemized deductions list on schedule D, I noticed that I'd neglected to include the Texas state sales tax that I paid. The 2005 code allows deducting either state income tax or state sales tax, but when I ran through that part of TaxCut, I'd missed the interview question that would have allowed me to enter this information. There's a standard calculation for computing this deduction if you've not tracked your purchases, so I used that methodology and ended up with about $300 added to my refund.

Now, this is only useful if you're in a state with a high sales tax and low income tax. Texas qualifies; I think Tennessee and Florida also fall into this group. It's also only useful if you itemize, but I deduct my mortgage interest, so I'm already doing that. I've you've not yet filed and fit that profile, double check your return. You might find yourself paying less or getting more back.

?

Log in

No account? Create an account