wise investment: Can taxes from my groceries receipts be included when I file my tax?
I heard from other people that they itemized all the receipts from groceries and other items that has taxes on them and they include this when they file their tax. They don’t own businesses so I don’t get how they can do this. Is there a separate form that I can fill out to include all my expenses that has taxes on them?
Answers and Views:
Answer by Sumit P
If you are itemizing, you have the option of claiming the sales tax paid through the year or state income tax witheld from your w2. For most people, claiming the state income tax is usually higher/better. But if you live in one of the states that does not have income tax, you could benefit from the sales tax deduction.
Hope this helps
Sumit
Answer by just meIf you itemize you can deduct either your income tax or sales tax paid during the year. Even if you elect to deduct the sales tax you paid you don’t have to save all of your receipts. You can save them or you can use a table the IRS has that shows the average amount of sales tax a taxpayer who has the amount of income you have would spend. Also, if you elect sales tax you can add tax from certain large purchases, such as SUV, RV, boat, offroad vehicles, etc.
You have to look at both and see which is largest.
Answer by JudyIf you itemize (schedule A) you have a choice of deducting state and local income tax, or sales tax. If you choose sales tax, there is a table for your state, by income range by family size, that you can use, or you can deduct actual amounts that you have the receipts for. If you use the table, you can add to that amount the sales tax you paid on a car, plane or boat.
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