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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.  When you report your Form W-2 Wage and Tax Statement, the TaxAct program transfers the info to the Federal Schedule A and the appropriate State form (which only applies if your state has an income tax).

To enter Sales Tax (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 top left corner of your screen, then click Federal).
  2. Click the Itemized or Standard Deductions dropdown, then click Taxes paid.
  3. Continue with the interview process until you reach the screen titled Do you want to enter state and local sales tax information?, then click Yes.
  4. Continue with the interview process to enter your information.

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


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