What that tax bill does
This article, unlike others, actually tells us what the tax bill does. Of special note:
Residents of states without income taxes will be allowed to deduct state and local sales taxes from their federal income returns. This will primarily benefit people in Florida, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming, all of which have a state sales tax, and Alaska, which has local sales taxes but not a state sales tax. Cost: $5 billion for a deduction that would last until Dec. 31, 2005.
Start saving your receipts.
October 12th, 2004 at 8:35 am
I still want to know:
I’m a legal resident of WA (no income tax), but, thanks to the Army, I live in SC (state income tax, and lower sales tax than WA).
Can I deduct sales tax? At what rate?
October 12th, 2004 at 9:45 am
woot…I am gonna have some fun with this one.
October 12th, 2004 at 9:45 am
thanks for the good link
October 12th, 2004 at 9:46 am
Another question…can I write off anything I buy in TN…a pack of gum, new car, 6 pack of beer etc…as long as I have a receipt?
October 12th, 2004 at 9:47 am
Dunno yet, justin. I’d say they’ll establish standard deductions and have an itemized option. I’d wait until the IRS offers guidance.