Tuesday, January 30, 2007
The IRS has released an Internet-based Sales Tax Deduction Calculator to help taxpayers determine whether they are better off claiming the deduction for state and local income taxes or state and local sales taxes. From the press release:
To figure the amount of optional general sales tax you are eligible to claim, just answer a few online questions and the system does the rest. First select either 2006 or 2005. Then, using your ZIP Code and just a few entries from your draft Form 1040, the Sales Tax Deduction Calculator will automatically figure the amount of state and local sales tax you can claim. You will see the results from your entries immediately on your computer screen. Even if state and local sales tax rates changed during the year (e.g., due to changes in state and local rates or because you moved your personal residence), the Sales Tax Deduction Calculator can handle it.