Hey Delaware, We Don’t Mean You…

by Kelly on January 29th, 2007

Or any other resident of a state where there is no sales tax.

But the rest of you? Listen up.

You have the option of claiming your local and state income tax or sales tax as deductions on your federal income tax return. Most folks automatically go for the income tax because it is easily figured. However, the IRS is now making the sales tax calculation a little easier, too.

On the one hand, you could save all of your receipts and add up the tax. Don’t laugh, this makes a lot of sense if you’ve purchased several big ticket items during the year. Consider whether you renovated your home with new appliances, furniture, etc. or whether you bought a new car.

But if you didn’t save those receipts, all is not lost. You can use the IRS’ handy sales tax calculator. They don’t collect or save personal information, so give it a whirl. You might be surprised at the results.