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According to the IRS, if you itemize deductions on your federal return you may deduct either state and local incometaxes or state and local sales taxes. You get to choose which to deduct, but you may not deduct both, and you can't deduct either unless you itemize deductions.
Chances are pretty good that unless your state has low income tax rates and fairly high sales tax rates, you'll be better off deducting the income taxes instead, but you do have the option.
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Is sales tax deducted from your paycheck?
Many taxes are deducted from your paycheck, but sales tax is not one of them. Sales taxes are collected by a merchant at the point of purchase of most goods and some services. The merchant remits the sales taxes to the state on your behalf. Occasionally, you many not pay sales taxes at the time of purchase, as in when you make a purchase online from a merchant in another state. In those cases, you would owe a use tax to your state which is usually paid when filling out your annual state income tax return.
Is tax amount deducted from gross sales to arrive at net sales?
No. tax is deducted from gross sales neither is it deducted from gross profit.
Can you claim sales tax on your taxes?
Yes, you can claim state and local sales taxes on your return. But in order to do so you must itemize deductions and you must not claim state and local income taxes. You're allowed to claim either state and local income taxes or state and local sales taxes, but not both.If you do claim the sales tax deduction, you can either claim the amount you actually paid (based on receipts) or the amount given to you by the IRS's Sales Tax Deduction Calculator.For a more detailed explanation of the state and local sales tax deduction, please see Deducting State Sales Tax.
Can counties collect local sales tax in place of state sales taxes?
It would depend on your state law. But in most places, counties collect sales taxes in addition to state sales taxes.
Do you add state and parish taxes together when figuring sales tax?
no
Is sales tax deducted from your paycheck?
Many taxes are deducted from your paycheck, but sales tax is not one of them. Sales taxes are collected by a merchant at the point of purchase of most goods and some services. The merchant remits the sales taxes to the state on your behalf. Occasionally, you many not pay sales taxes at the time of purchase, as in when you make a purchase online from a merchant in another state. In those cases, you would owe a use tax to your state which is usually paid when filling out your annual state income tax return.
Is tax amount deducted from gross sales to arrive at net sales?
No. tax is deducted from gross sales neither is it deducted from gross profit.
What is the KY sales tax for new cars?
New car sales tax in Ky is 6%. Trade in value is deducted from the selling price. You pay taxes on the difference.
What is the sales tax in Alaska?
Alaska does not have a State sales tax; however, several communities across the state do have a sales tax. These taxes are low - about 2%.
Can you claim sales tax on your taxes?
Yes, you can claim state and local sales taxes on your return. But in order to do so you must itemize deductions and you must not claim state and local income taxes. You're allowed to claim either state and local income taxes or state and local sales taxes, but not both.If you do claim the sales tax deduction, you can either claim the amount you actually paid (based on receipts) or the amount given to you by the IRS's Sales Tax Deduction Calculator.For a more detailed explanation of the state and local sales tax deduction, please see Deducting State Sales Tax.
Can counties collect local sales tax in place of state sales taxes?
It would depend on your state law. But in most places, counties collect sales taxes in addition to state sales taxes.
Are the 2 taxes charged on each pack of cigarettes a sales tax?
There is a federal excise tax and a state sales tax.
What is the sales tax in the state Louisiana?
The state sales tax rate in Louisiana is 5.000%. With local taxes, the total sales tax rate is between 5.000% and 12.000%.
What is a new car sales tax in Arizona?
The state sales tax rate in Arizona is 5.600%. With local taxes, the total sales tax rate is between 5.850% and 10.900%.
Are there taxes on Black Friday?
If the state has a sales tax, then yes, all taxes apply.
Can state and local taxes paid in 2007 for tax year 2006 be deducted for 2007 taxes?
Yes, provided you are itemizing deductions (schedule A).
What is new car sales tax rate in MD?
The state sales tax rate in Maryland is 6%. There are no local taxes beyond the state rate.
