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You can elect to deduct state and local GENERAL SALES TAXES instead of state and local INCOME TAXES as an itemized deduction on Schedule A (Form 1040) Itemized Deductions. You cannot deduct both. To figure your state and local general sales tax deduction, you can use either your actual expenses or the state sales tax tables.

Actual Amount

This will allow you to enter the actual sales tax amounts you paid during the tax year. You will need to keep all receipts for verification purposes.

Table Amount

This allows you to enter the information and use a standard tax (percentage) rate. You may also be able to add the state and local general sales taxes paid on certain specified items, such as motor vehicles (purchased or leased), aircraft, boats, homes (including mobile and prefabricated homes), and home building materials.

TaxAct® will use the higher of state and local income taxes, or state and local general sales taxes to report on Line 5a of Schedule A.

Remember, state wages and withholding will be entered on the Form W-2 Wage and Tax Statement and will flow to the Federal Schedule A and the appropriate State form (which only applies if your state has an income tax).

To enter Sales Tax (either Actual or Table Amount) in the TaxAct program:

  1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then click Federal.
  2. Click Itemized or Standard Deductions in the Federal Quick Q&A Topics menu to expand, then click Taxes paid.
  3. Click + Add Schedule C to create a new copy of the form or click Edit to review a form already created.
  4. Continue with the interview process to enter all of the appropriate information.
  5. On the screen titled Do you want to enter state and local sales tax information?, click Yes.
  6. The program will proceed with the interview questions for you to enter or review the appropriate information.

Related Links

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.


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