If you itemize your deductions, you may be in for a windfall on this years tax. Yep, Congress has renewed the optional sales tax deduction. Of course, you have to figure it out.The state sales tax deduction was set to expire at the end of the fiscal 2005 year. At the last minute, Congress renewed it. All and all, this is great news. One problem does exist, however.
If you itemize your tax deductions, you already know that you can claim a deduction for the total state income taxes you paid during the year. Depending on your state, that can be a very large tax deduction. But what if you live in a state that doesn’t collect income taxes? For the last couple of years, you could claim a deduction for the total state and local sales tax you paid on your purchases. In fact, you can do this regardless of whether you live in a state that collects income tax or not.
Our free – 2014 state tax estimator online that will estimate your taxes. By entering in very simple information generated by an online service you can see what to wait for for your refund. It only takes a moment to enter your information correctly such as; earnings, filing status, and deductions. This simple tool will save you time and prepare you for actual tax time.