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March 1, 2024
Question

Line 1d (7) Schedule A

  • March 1, 2024
  • 1 reply
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When I do my final check I get a message that says "Check This Entry: Tax and Interest Deduction Worksheet: Actual sales tax amount paid should be entered, or, if different, enter the sales tax rate paid for. Like 1d(7) but does not tell me where I am supposed to find this information

1 reply

DawnC
March 1, 2024

You can visit your state's Department of Revenue to verify the state's general sales tax rate, or you can just google 'sales tax rate' for a specific county or city.   You can also check the rate by looking at one of your 2023 receipts.   Make sure you enter your total sales tax rate.  Depending on where you lived, you could have one of the following tax rates:

 

  • Both state and local sales taxes: To get the total sales tax rate, add the state tax rate and the local tax rate.
  • No state or local sales tax: Enter the sales tax rate as 0.
  • State sales tax, but no local tax: Enter the state sales tax rate.
  • No state sales tax, but local tax: In this case (except Alaska residents), we cannot calculate your sales tax deduction for you. You must enter the total amount of sales tax you actually paid.

 

You can add multiple lines of sales tax rates if you moved during the year.   And you will also be allowed to enter the tax on major purchases separately, but in addition to your general sales tax rate. 

 

You can go through the sales tax interview and update that information.   To enter sales tax info in TurboTax, 

 

  1. Open or continue your return.
  2. Search for sales tax and select Jump to sales tax in the search results.
  3. When asked how you want to enter your sales tax info:
    • Choose EasyGuide if you want us to walk you through it.
    • Choose Enter All My Receipts if you’ve saved all of your receipts and can give the grand total.   

You will be asked to enter the sales tax rates there so we can properly compare your deductions and determine which is best for you.   

 

The Internal Revenue Service (IRS) permits you to write off either your state and local income tax or sales taxes when itemizing your deductions. People who live in a state that does not impose income taxes often benefit most from this deduction. However, you might also be better off deducting sales taxes instead of income taxes if you make large purchases during the year and your total sales tax payments exceed those for state income tax. You can use either the actual sales taxes you paid or the IRS optional sales tax tables. Beginning with tax years after 2017, the amount of state and local taxes, including sales tax, is limited to a maximum of $10,000.

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