Taxpayers who itemize their deductions on Schedule A can deduct certain taxes they paid during the year. Refer to the IRS Instructions for Schedule A for more information on the taxes that the taxpayer is able to deduct on their tax return.
To access the sales tax worksheet in TaxSlayer ProWeb, from the Federal Section of the tax return select:
- Deductions
- Itemized Deductions.
- Taxes You Paid
Property Taxes
Additional Real Estate Taxes (Non-Business Property) - Real estate taxes are deductible as itemized deductions only if the taxpayer owns the real estate and the taxes are based on the assessed value of the property. If a mortgage company pays the taxes from an escrow account, deduct the taxes actually paid on behalf of the taxpayer, not the amount the taxpayer paid into escrow. Unlike mortgage interest, the real estate tax deduction is not limited to the first two homes owned by the taxpayer.
Foreign taxes paid on real estate are not deductible.
State and Local Sales Taxes
Click here for information on entering the Sales Tax Worksheet
Prior Year 4th Quarter Estimates paid after 12/31 - Enter the amount of state estimated payments entered on the prior year return that were paid after 12/31
Sales Tax Deduction - Enter the taxpayer's sales tax rate, and ProWeb will determine which deduction benefits them the most. (Note that deducting state and local sales tax instead of income tax is most beneficial to taxpayers in states that don't have an income tax.)
Other Taxes - Enter the amount of other deductible taxes the taxpayer paid during the year. Other deductible taxes includes taxes paid to a foreign country (if the foreign tax credit was not claimed), and generation skipping tax (GST) imposed on certain income distributions.
Modified Adjusted Gross Income
TaxSlayer ProWeb automatically calculates the taxpayer's Modified Adjusted Gross Income (MAGI) for the purposes of the deduction. However, it may be necessary to modify the AGI used for the deduction by adding in certain non-taxable items. Refer to Schedule A Instructions for the nontaxable items which must be included in MAGI for the deduction.
To adjust the calculated MAGI, enter a positive amount in the field labeled "Amount to Adjust the Calculated MAGI by".
Printing Schedule A
To print a copy of Schedule A within the tax return, from the Federal Section select:
- Deductions
- Itemized Deductions - Click the "Print" icon.
Note: This is a guide on entering taxes paid in Schedule A in TaxSlayer ProWeb. This is not intended as tax advice.
Additional Information: