All about SALT - Deducting State and Local Taxes on a Schedule A
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- Опубликовано: 10 июл 2022
- Although it's been limited in recent years, the Schedule A deductions for state and local taxes (SALT) are an important deduction for many taxpayers. This video goes into detail about what state and local taxes can and cannot be deducted on a Schedule A.
To learn more about itemizing deductions, click here: • Can I Itemize Deductions?
To find out how sometimes your state tax refund could be taxable, click here: • Why is my state tax re...
Resources and Additional information:
IRS Publication 17: "Your Federal Income Tax": www.irs.gov/pub/irs-pdf/p17.pdf
IRS Schedule A: "Itemized Deductions": www.irs.gov/pub/irs-pdf/f1040...
Instructions for IRS Schedule A (contains the worksheet and tables for calculating a sales tax deduction): www.irs.gov/pub/irs-pdf/i1040...
Online Sales Tax Calculator at irs.gov: www.irs.gov/SalesTax
Information on the Georgia Title Ad Valorem Tax, and Annual Georgia EV user fee and be found at www.dor.georgia.gov
The Tax Geek on Twitter: @taxgeekusa
The Tax Geek on Reddit: www.reddit.com/r/askataxgeek
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Intro Music: "Bluesy Vibes" - Doug Maxwell - RUclips Audio Library
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DISCLAIMER: This video is for educational and informational purposes only. It is not intended to render tax advice or investment advice for individual situations. If you have questions regarding your particular situation, please consult with a qualified tax or investment professional.
The information in this video is current as of date of publication, and is subject to changes.
I swear I love this channel ❤️
Who is responsible for collecting local and district taxes if you are an online seller? Who do you remit those taxes to? Does CDTFA also handles it?
You are responsible for collecting state and local taxes on online sales. That's why most online sellers use an intermediary to handle payments because they can keep track of all the state and local tax rates, and what is taxable and what isn't.
On a schedule c, if you don't do actual car expenses, can you still write off gasoline excise tax? And, if so, is it the full amount or the percentage of vehicle use?
2. If you use your vehicle variably (the percentage of use varies per quarter) are you supposed to figure out the percentage each quarter or do you keep it the same percentage all year regardless of any fluctuations in use?
If you don't claim actual vehicle expenses, any gasoline taxes (or other vehicular taxes, for that matter), are included within the Standard Mileage Rate. Deducting either state or Federal gasoline taxes is specifically forbidden on a Schedule A.
You percentage of business use of a vehicle is calculated on a yearly basis.
@@TheTaxGeek Okay, awesome. I couldn't find anything that specified the details on that one, thank you!
Hi can you please make a video on PTET
I'm not familiar with those initials. If you tell me what it stands for, and it's relevant to the channel, I'll be happy to made a video on the subject, if I haven't already.
I see that in states with no or low income tax, taking the sales tax deduction may be more advantageous. What if I paid $10,000 in property taxes (which takes advantage the full amount allowed for MFJ), wouldn't it be best to claim the sales tax deduction so that any state refund would not be taxable on next year's federal tax return? Am I understanding that correctly?
Your state tax refund is only taxable to the extent it reduced your federal tax liability. Only if your refund exceeded the difference between what you could have deducted and what you actually deducted is any part of the refund taxable. If you haven't already, check out this other video on the channel: ruclips.net/video/RBQfAs6ifDs/видео.html
@@TheTaxGeek Thanks. That makes sense. I left a follow-up comment on the video you referenced above.