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Thread: Expense deductions and sales tax

  1. #1
    SpeakngEZ
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    Default Expense deductions and sales tax

    So, I started to total up all of my receipts for shoes, costumes, etc to start figuring out my taxes. But I couldn't figure out if I was supposed to claim the amount before the sales tax or afterward? I couldn't find a website that told me, either.

    This is my first time doing taxes for myself. Can anyone help me with this?

  2. #2
    God/dess Zofia's Avatar
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    Default Re: Expense deductions and sales tax

    You include the sales tax. But, you cannot deduct it again on the line for sales taxes on your itemized deductions.

    HTH
    Z

    Disclosure under IRS Circular 230: To insure compliance with recently released Internal Revenue Rules, this communication was not written or intended to be relied on to avoid federal tax related penalties or for promoting, marketing or recommending to any party any tax related matters addressed herein.

  3. #3
    SpeakngEZ
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    Default Re: Expense deductions and sales tax

    Thanks, Zofia!

    Does that still apply if I'm going to deduct my state taxes instead of my sales taxes?

  4. #4
    Veteran Member Robertjordan's Avatar
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    Default Re: Expense deductions and sales tax

    Sales taxes are included in the expense to be deducted for business purposes. On your personal return you get to deduct your state income taxes OR your sales taxes paid (but not already deducted for business purposes). Since you live in California you would be deducting your state income taxes.

    I live in Florida where there is no state income tax (yea!) so I can deduct sales tax. You can either keep track of every single purchase or use a standard table which bases it off of your income. I would say that unless you make some very large taxable purchases (like a boat or a car) it's much simpler to just use the standard tables.

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