NOTE: You can deduct either the sales tax deduction or the state income tax deduction – if you want to override the system default, see Sales Tax – Elect General Sales Tax Deduction or State Income Tax Deduction.

See the IRS Instructions for Schedule A for details on what types of taxes can be entered for state and local general sales taxes paid. 

IRS Publication 17 specifies that you cannot deduct the following: 

• Employment taxes
• Estate, inheritance, legacy, or succession taxes
• Federal income taxes
• Fines and penalties
• Foreign personal or real property taxes
• Gift taxes
• License fees
• Per capita taxes

Desktop

To enter Sales Tax in the TaxAct Professional Editions program, follow the steps below:

1. From within the client return, click Federal. 
2. Click Deductions, then click review Itemized deduction – Taxes you paid from the list of summary topics.
3. Complete the rest of the interview process. 

TaxAct Online

To enter Sales Tax for individual returns in the TaxAct Online program, follow the steps below:

Dashboard

1. From within your TaxAct return, click Deductions & Credits.
   • On smaller devices, click the menu at the top left corner of your screen, then make your selection.
2. Click the Estimates & Other Taxes Paid drop-down.
3. Click Add beside Deductible Taxes Paid. 
4. Complete the rest of the interview process. 

Classic

1. From within your TaxAct return, click Federal. 
   • On smaller devices, click the menu at the top left corner of your screen, then make your selection.
2. Click the Itemized or Standard Deductions drop-down, then click Taxes paid.
3. Complete the rest of the interview process. 

Related Links

• Individuals – Sales Tax – Entering in the Program
• Enter or Edit General Sales Tax Deduction