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husotx
Mar 29, 2007, 08:33 PM
In 2006, I was a resident of Louisiana between January and August and a resident of Texas between August and December. I know that I can itemize my state income tax in Louisiana. Given that there is no state income tax in Texas, I wonder if I can add sale tax that I paid for a big purchase item in Texas to my itemized deductions. I know that you can choose either sales taxes or state income taxes when you itemize. But I believe it should be considered double dipping since there is no state income tax to itemize in Texas. :)

Mobea
Mar 31, 2007, 08:39 PM
In 2006, I was a resident of Louisiana between January and August and a resident of Texas between August and December. I know that I can itemize my state income tax in Louisiana. Given that there is no state income tax in Texas, I wonder if I can add sale tax that I paid for a big purchase item in Texas to my itemized deductions. I know that you can choose either sales taxes or state income taxes when you itemize. But I believe it should be considered double dipping since there is no state income tax to itemize in Texas. :)
Yes, the IRS allows a standard itemized deduction calculation for sales tax paid in TX based on income and they also allow you to additionally deduct for sales tax that you paid for big ticket items, such as vehicles, boats, etc. You will see that line right under the sales tax deduction on your Schedule A. Just add it there.
Hope that helps,
Mobea

AtlantaTaxExpert
Apr 4, 2007, 10:59 AM
It's NOT quite that simple.

Do the computations for the sales tax for BOTH states.

Then compare what was withheld from Louisiana.

Pick the LARGER of the two deductions.

You CANNOT take both deductions.