New tax break in 2004 for itemizers

[kranky]

Read in Kiplinger's that there's a new tax deduction that was recently passed that affects people who itemize. You can deduct either what you paid in state income tax or in sales tax. The IRS will be making up tables that you can use as a estimated amount of sales tax paid based on your income, or if your actual sales tax paid exceeds that amount, you can deduct the higher amount (assuming you can substantiate it if necessary).

It said if you bought a boat or a car, you can add that amount to the estimated amount the IRS provides.

The law is in effect for 2004 and 2005 only. The IRS tables may not be available until sometime early in 2005, so you might want to make sure you have that information before you file.

 

[Ameesh]

Originally posted by: kranky
Read in Kiplinger's that there's a new tax deduction that was recently passed that affects people who itemize. You can deduct either what you paid in state income tax or in sales tax. The IRS will be making up tables that you can use as a estimated amount of sales tax paid based on your income, or if your actual sales tax paid exceeds that amount, you can deduct the higher amount (assuming you can substantiate it if necessary).

It said if you bought a boat or a car, you can add that amount to the estimated amount the IRS provides.

The law is in effect for 2004 and 2005 only. The IRS tables may not be available until sometime early in 2005, so you might want to make sure you have that information before you file.

thanks for the post! :thumbsup: i bought a bunch of stuff this year so i defintely want to deduct my sales tax

 

[kranky]

Day shift bump.

 

[GRIFFIN1]

So I can't deduct both my state income tax and sales tax?

 

[JDub02]

wow .. very cool .. even more money back. 🙂

maybe i'll be able to completely pay off my truck.

it would be really cool if Congress would get their act together and pass the Fair Tax.

 

[vi edit]

Interesting.

I bought a car, a digital rebel, and a ton of crap for a new apt this year. Wonder which way I'll come out ahead on.

 

[ElFenix]

link!