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Could deducting state and local sales taxes save you more?

February 24, 2014

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For the last several years, taxpayers have been allowed to take an itemized deduction for state and local sales taxes in lieu of state and local income taxes. Although this break hasn’t yet been extended to 2014, it is available for 2013.

It can be valuable if you reside in a state with no or low income taxes or if you purchase major items, such as a car or boat. So see if you can save more by deducting sales tax on your 2013 return. And if you’re contemplating a major purchase, keep an eye on Congress to see if the break will be revived for 2014. You may want to factor the deduction’s availability into your purchase decision.

For help determining whether deducting sales tax makes sense for you — and for the latest information on the status of the deduction for 2014 — please contact us.

For the last several years, taxpayers have been allowed to take an itemized deduction for state and local sales taxes in lieu of state and local income taxes. Although this break hasn’t yet been extended to 2014, it is available for 2013.

It can be valuable if you reside in a state with no or low income taxes or if you purchase major items, such as a car or boat. So see if you can save more by deducting sales tax on your 2013 return. And if you’re contemplating a major purchase, keep an eye on Congress to see if the break will be revived for 2014. You may want to factor the deduction’s availability into your purchase decision.

For help determining whether deducting sales tax makes sense for you — and for the latest information on the status of the deduction for 2014 — please contact us.

© 2014

All content provided in this article is for informational purposes only. Matters discussed in this article are subject to change. For up-to-date information on this subject please contact a Clark Schaefer Hackett professional. Clark Schaefer Hackett will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.

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