Sales Tax Income Tax Deduction Expired in 2011
Unless Congress acts in 2012, the sales tax deduction on Schedule A has gone the way of the dinosaurs. Until the end of 2011, you were allowed to take the deduction one of two ways. The first way was to use actual receipts of items you purchased during the year. The second method was to base the sales tax deduction amount as a percentage of the amount of adjusted gross income (AGI) . Most people used the AGI method of calculating the sales tax deduction on Schedule A fo those States that do not have an income tax. But as I indicated above, the sales tax deduction is no more unless Congress acts to extend it.
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