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, follow the steps below.
Online
Dashboard
From within your TaxAct return, click Deductions & Credits.
On smaller devices, click the menu at the top left corner of your screen, then make your selection.
Click the Estimates & Other Taxes Paid drop-down.
Click Add beside Deductible Taxes Paid.
Complete the rest of the interview process.
Classic
From within your TaxAct return, click Federal.
On smaller devices, click the menu at the top left corner of your screen, then make your selection.
Click the Itemized or Standard Deductions drop-down, then click Taxes paid.
Complete the rest of the interview process.
Desktop
From within your TaxAct return, click Federal.
Click the Itemized or Standard Deductions drop-down, then click Taxes paid.