[Michael_03]

Hello,

If I file as Dual Status for the last year of residency, how much Sales tax can I claim on Schedule A for the
Itemizing process (Schedule A, Field 5b "General Sales Tax") ?
Can I claim the entire year, or a percentage that reflects the part that I lived in the US

Example:
Lived in WA-State.
Worked in USA January-August 2011.

According to the Instructions, I use the "Optional Sales Table" from the IRS homepage in the "Sales Tax Deduction Calculator".

Tax Year 2011; Income Range 70000-80000; Exemptions: 1; "0" in Sales Tax for Specific Items.
Zip Code: 98023 "FEDERAL WAY, KING, WA"

State Tax: 6.50%
Local Tax: 3.00%

---------------
This results in:
Total General Sales Tax Deduction (rounded to the nearest dollar): $1,190
This is for the entire year.
-----------------
If I include a move to a different (fake, because left the US) zip code on 09/01 (left the US end of August), I get:
Percentage of year at residence: 66.58%
State Tax $541.92
Local Tax $250.12
Total Tax: $792.04
------------------------------

Is that what I can claim on Schedule A ?

[AtlantaTaxExpert]

You must pro-rate the Sales Tax deduction to the number of days you were physicalluy located IN the United States.

However, let me re-emphasize: The dual-status return is NOT for amateurs! Get professional help, preferably from someone with experience filing dual-status returns.

If you want my professional help, double-click on my title above and scroll down to my profile/signature. You will find my email address and websites there.

[Michael_03]

Thanks for your answer.
I have spoken to an IRS agent today and he told me pretty much the same.
But also this for my Dual Status return (Jan-Aug: USA, Sept-Dec:Germany):
As the 1040NR form's Schedule A does not allow for a Sales Tax deduction, he suggested to use the 1040 Schedule A for the resident part, then copy the final value into the 1040 Dual Status Statement and from there copy the value into the 1040NR Dual Status Return form.

Can you confirm this out of your experience?

Thanks again,

Michael

[AtlantaTaxExpert]

Yes, you CAN do that, but you must include BOTH the Form 1040 Schedule with the return.

[Michael_03]

Perfect, thanks. So I will include an Empty 1040NR Schedule A and a filled in Schedule A with the 1040 part - which holds the Sales Tax and Donation done while being a resident.
Thanks again!!

[AtlantaTaxExpert]

Actually, you need to fill in BOTH Schedules A.

Please refer to my early warning about the dual-status return.

[Michael_03]

Hm...
My 1040Nr Schedule A would be still empty then, because I
1) can't enter the sales tax deduction (only on the 1040 Sched. A)
2) Would list the donation on both forms, or would I want to list this item twice? Would that not confuse the IRS?
3) Have not any other deductions for a Schedule A, besides these two

And yes, thanks for the warning.
I just want to see how far I get on my own (personal satisfaction) and then engage a professional, like you to really finish it.

Michael

[AtlantaTaxExpert]

Enter it where the "local or state income tax" is entered, and make reference to the OTHER SChedule A. The total deduction at the bottom of both Schedules A MUST match.

Again, refer to my warning about Amateurs preparing a dual-status return!