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<p>[QUOTE="illini420, post: 932877, member: 19423"]That is correct, though as a California resident I tend to forget that... You are permitted to deduct the greater of the sales tax which businesses collect from you OR the state income taxes you pay. Since CA income taxes are so high, it almost always exceeds the sales taxes paid. Though even if you do take the state income tax deduction, you can still deduct certain sales taxes in addition such as on a new car purchase.</p><p> </p><p>If you do take the sales tax deduction though you better believe you need to be keeping records of it (unless you just use the IRS amount provided based on your income).[/QUOTE]</p><p><br /></p>
[QUOTE="illini420, post: 932877, member: 19423"]That is correct, though as a California resident I tend to forget that... You are permitted to deduct the greater of the sales tax which businesses collect from you OR the state income taxes you pay. Since CA income taxes are so high, it almost always exceeds the sales taxes paid. Though even if you do take the state income tax deduction, you can still deduct certain sales taxes in addition such as on a new car purchase. If you do take the sales tax deduction though you better believe you need to be keeping records of it (unless you just use the IRS amount provided based on your income).[/QUOTE]
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