Keep Receipts?

[hellok4713]

Is it possible to claim sales tax off receipts on everyday purchases? Or "deduct" might be the right term. I live and work in Tennessee.

[jpg7n16]

Yes it's possible. You need to see this site on IRS.gov

Sales Tax Deduction Calculator

[i_am_the_slime]

The key thing here is that you can deduct either state and local SALES tax OR state and local INCOME tax. If your state has income tax, most likely you pay more in income tax than you do sales tax.

[marvholly]

Originally Posted by i_am_the_slime

The key thing here is that you can deduct either state and local SALES tax OR state and local INCOME tax. If your state has income tax, most likely you pay more in income tax than you do sales tax.

The only exception if you live in an area where state income tax is high MIGHT be a year of a BIG purchase like a car or boat.

[Frugal]

I think in some cases you might be able to, but I believe it depends upon the state. I don't know how it works in a state with state income tax vs. one without. For instance, in some states, they charge a higher sales tax, but don't have a state income tax. Other states, however, don't have sales tax, but have a higher state income tax.

I would also say to check with IRS.gov.

[mcfroggin]

If you have a home business, you can deduct a LOT of things. Check out my website for articles on starting a home business if you come up with an idea.

[hellok4713]

Thank you all for the information!

[nick__45]

This is a good question. Can someone explain or point me to where Virginia stands on sale tax deduction. VA has both sale and income taxes.

[ActYourWage]

Originally Posted by i_am_the_slime

The key thing here is that you can deduct either state and local SALES tax OR state and local INCOME tax. If your state has income tax, most likely you pay more in income tax than you do sales tax.

Tennessee doesn't have an income tax. You can take the standard sales deduction or report your the sales tax.

[danieldroga]

Yes, it is really possible to do that. Actually you have plenty of options to choose from. But to be able to choose what option would be the best for your case, you have to ask your local government about how they deal with taxes in your country.

[photo]

It's also a good idea to keep receipts because if something breaks, you can receive a full refund. I keep all sales receipts (except for extremely small purchases) for two years. When the fluorescent light bulbs first came out, several simply quit working after only a few months, but I was able to return them since I kept the receipts.

[krantcents]

You can deduct sales tax based on receipts only if you itemized your deductions.

[Eric80]

I'm not sure if you can or not - i know that from most places if you ask for a VAT receipt then that can be done.

[Frugal]

I believe you have to pay to have a VAT. You have to sell things, or be a merchant of sorts.