Are sales taxes deductible on the 2006 Federal tax return in lieu of State income taxes?

LOUIE2007-01-21T10:53:25Z

Favorite Answer

Yes they are and you can also add big ticket items such as a car to the tables provided for your use.

Anonymous2016-05-24T10:12:37Z

Income taxes (state) have always been deductible. For the last few years, you have been given the choice between claiming state/local income taxes or sales taxes - but not both. This usually works out when you have purchased a big ticket item such as a new car. However, in order to get the deduction, you have to itemize.

wdethloff2007-01-22T06:11:53Z

Yes, mostly it is for the few states that do not charge State Income Tax, but generally have a higher sales tax.