Optional State Sales Tax

[beezee28]

Can anyone explain in laymans term what this means? I was reading the IRS Publication 600 and still I don't understand it. Should have study for rocket science degree.

 

[Whaler Proud]

Re: Optional State Sales Tax

The optional sales tax deduction is for residents of states that do not have state income tax. It kind of "levels the field" with other states.<br /><br />In states with income tax, residents have the option of deducting the sales tax or state income tax, whichever is greater.

 

[Boomyal]

Re: Optional State Sales Tax

I do believe that it is a brand new phenomenum. State of Washington, for one, has screamed about the inequity of state income tax deductions because WA doesn't have one to deduct, yet we were still payin taxes to support the state gum't.

 

[wajajaja]

Re: Optional State Sales Tax

it brings back the sales tax deduction but only as a trade off of the state income tax deduction which ever is higher. Either or is a way of balancing the scales for those that get hit with one or the other.