Could deducting state and local sales taxes save you more?

For the last several years, taxpayers have been allowed to take an itemized deduction for state and local sales taxes in lieu of state and local income taxes. Although this break hasn’t yet been extended to 2014, it is available for 2013.

It can be valuable if you reside in a state with no or low income taxes or if you purchase major items, such as a car or boat. So see if you can save more by deducting sales tax on your 2013 return. And if you’re contemplating a major purchase, keep an eye on Congress to see if the break will be revived for 2014. You may want to factor the deduction’s availability into your purchase decision.

For help determining whether deducting sales tax makes sense for you — and for the latest information on the status of the deduction for 2014 — please contact O’Connor & Drew, P.C.

 

Lauren A. Carnes, CPA, MST

About Lauren A. Carnes, CPA, MST

Lauren joined the firm in 1988 and became a principal in 1997. Lauren has extensive experience with corporate and individual tax planning, financial planning and in representation with government agencies. She currently directs our tax department overseeing services in most areas including corporate and individual taxation.



Lauren A. Carnes, CPA, MST
Author: Lauren A. Carnes, CPA, MST
Lauren joined the firm in 1988 and became a principal in 1997. Lauren has extensive experience with corporate and individual tax planning, financial planning and in representation with government agencies. She currently directs our tax department overseeing services in most areas including corporate and individual taxation.