A taxpayer who itemizes their deductions using Schedule A can choose to deduct their state and local sales taxes instead of their state and local income taxes. The Sales Tax Deduction Worksheet is used to figure the amount of this deduction for the taxpayer.
To access the sales tax worksheet in TaxSlayer ProWeb, from the Federal Section of the tax return select:
- Deductions
- Itemized Deductions
- Taxes You Paid
- I want to input my state and local sales tax - Check the box to open the Sales Tax Deduction Menu.
- + Add Sales Tax You Paid - Click this button
- ZIP Code - Enter the taxpayer's ZIP Code.
- Number of days you've lived in this ZIP code during the last tax year - Enter the number of days.
-
Local general sales tax percent
State general sales tax percent - Skip these fields to use default sales tax rates. Otherwise, to override the default rates enter the sales tax percentage to use in each field. - Sales tax paid on large purchases - If applicable, enter the dollar amount of sales tax paid on any purchases in excess of $1000.
When finished, click the blue SAVE button.
If another worksheet needs to be created for another ZIP Code, click + Add Sales Tax You Paid.
Note: This is a guide on entering the sales tax deduction to Schedule A in TaxSlayer ProWeb. This is not intended as tax advice.
Additional Information:
IRS Topic No. 503 Deductible Taxes