2006-03-20

Tax Junk

This isn't a link, but I want to note it, just in case.
A US tax law allows taxpayers to choose whether they want to deduct the state and local sales taxes they have paid during the year in lieu of deducting state and local income taxes. This is beneficial for individuals who itemize their deductions and live in one of seven "no income tax" states (Alaska, Florida, Nevada, New Hampshire, South Dakota, Texas, and Washington) or live in states where the sales tax rate is in excess of the income tax rate. Taxpayers can choose to determine the deductible amount by relying on actual receipts or by using tables developed by the IRS. In addition, individuals who had large purchases, such as automobiles and boats, can add sales tax paid on those items on top of the amount indicated in the tables developed by the IRS.

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