You see, Congress offers itemizers the choice between deducting the state income taxes or state sales taxes they paid. You choose whichever gives you the largest deduction. So if your state doesn't have an income tax, the sales tax write-off is clearly the way to go.
In This Issue
IRS Expanding audits of S-Corps
This is a text block. You can use it to add text to your template. That’s exactly what happened for purposes of 2014 returns. The break expired at the end of 2013 and then was revived retroactively in December 2014 to cover 2014 returns. And then it died again on December 31. Right now, we don’t know what the rule will before 2015. But for 2014 returns, the state sales tax deduction option is alive and well. This is particularly important to you if you live in a state that does not impose a state income tax.