Taxes – US sales tax
Tax time is just around the corner, and it is time to
start planning. Obviously, you want to organize your
finances to lower your taxes as much as possible.
Fortunately, the government has given you a great new
way to potentially lower your federal taxes. You now
have the opportunity to claim your state sales tax to
lower your taxable income on your federal tax return.
Have you always been able to deduct your sales tax in
the US?
While the ability to write off the amounts you paid in
state sales tax was formerly available when paying your
US income tax, it was taken off the books by Congress in
the Tax Reform Act of 1986. When you are preparing your
2006 deductions, it is important to realize that the
sales tax deduction is back. Depending on where you live
in the US and your specific circumstances, this could
result in big savings.
Should you deduct your state income tax or state sales
tax?
When faced with filling in your US tax forms, the
simplest method is always to take the pre-determined
deductions. The IRS will, based on your filling state
and income level, give you the option of just choosing a
pre-determined deduction from your taxable income. The
IRS reports that most people simply chose the
pre-determined number – as many as 66% of all tax payers
take the easy way out. And of course, for some people
the pre-determined numbers will be the best option for
them. For many others, however, they will take the
pre-determined numbers for the sake of simplicity. Well,
if you have always taken the easy route just for the
sake of simplicity, it is time to rethink your tax
filing practices.
If you forgo the pre-determined calculation and choose
to itemize your deductions, you can now decide if you
want to deduct your state income tax or your state sales
tax. This is significant to the amount of money you end
up paying. It will be particularly significant if you
live in one of the few states - Tennessee, Florida,
Wyoming, Washington South Dakota, Texas, and Nevada –
where there is no state income tax. Previously,
residents of these states could not claim any state tax
exemption. Thanks to the new rules, residents of these
states can now claim their state sales tax to reduce
their taxable income on their US tax forms.
Even if you are a zealous record keeper, and have a
receipt for every single purchase you made where you
paid sales tax, you will still likely be better off
choosing to deduct your state income tax – the fact is,
you likely will just not have paid enough in sales tax.
However, if you have made some significant purchases –
such as a car, a boat, an airplane, luxury items or a
major event such as a wedding – the sales tax you paid
last year could be more than you paid in state income
taxes.
Planning ahead
In order to considering using this exciting deduction
option, the key is to keep yourself prepared throughout
the year. Make sure you hold on to receipts for your big
ticket items, and resist the urge to take the easy way
out come tax time. If you have paid a lot of state sales
tax in the US, you could be paying less income tax at
tax time.
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Review Our Directory for Illinois Farm Sales Tax Exemptions
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Our Best Web Links For Illinois Farm Sales Tax Exemptions
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1. Tax exempt savings
... bonds issued by the State of Illinois. These bonds are issued by ... Congress eliminated the tax exemptions for savings and loans and ... for Colorado Sales Tax Exemption for Farm Equipment ... DR ...
http://2637.iuxuuo.info/ |
2. Friends of the Earth - News Release
... other consumer, farm and environmental ... to eliminate exemptions from their ... Chemical Taxes: Tax Reform for ... from state sales taxes, resulting ... 62 million); Illinois ($59 million ...
http://www.foe.org/new/releases/699fact.html |
3. Plains Humanities Aliance
... age of sixteen, Teddy Blue left the family farm near Lincoln, Nebraska and sought employment in ... ... Yankees. Published: Urbana: University of Illinois Press, 1963. In this book, Brown examines ...
http://libr.unl.edu:2000/plains/bibs/nebraska.html |
4. ►► Cultivator - Agriculture Equipment
... agricultural equipment sales, service, parts and ... over 30 years. ... Tax Exemptions for Agriculture ... in the newest farm equipment and ... Toy To Grow On Illinois Department Of ...
http://www.cultivatorhome ...agricultureequipment/ |
5. Arkansas sales tax exemption
... business_office/sales-tax-exemptions/ Cached - Similar pages ... Connecticut. Georgia. Idaho. Illinois ... http://www.bagmaster.com ... exemption from sales tax for new and used. farm machinery and ...
http://4592.j4ju38.info/ |
6. George Fearon
... excise and sales taxes from Indian ... abandoned farm or municipal ... with any exemptions from paying or ... expansion of tax-exempt citizenry ... University of Illinois, and David B ...
http://home.rochester.rr.com/gfearon/ |
7. Farmers insurance bill pay
... To pay for the credits, Assembly Bill 923 would revoke sales tax exemptions on farm machinery, diesel fuel and other items. ... http://www.ufw.org/_board.php?mode=view&b_code=news_news&b_no=1597&page ...
http://814.vdxvfo.info/ |
8. ILLINOIS SALES TAX
... sales tax on fertilizer, farm chemicals, feed and ... www ... the sales tax, the law in Illinois requires that ... handle ... these sales tax issues. Sales tax exemptions. Illinois allows ...
http://illinois3.taxz.info/index3.aspx |
9. The National Aglaw Reporter - The National Agricultural Law Center
... Planning and Taxation Farm Commodity Programs Farm Credit Food Safety International Agricultural ... ... the "trade secrets" and "law enforcement" exemptions to the Freedom of Information Act (FOIA) a ...
http://www.nationalaglawc ...porter/casesummaries/ |
10. 6321 - Fraudulent Conveyances Part1 p2
... Result Foreclosure Sales 6320 ... State Created Exemptions 6321 ... assessments for the tax years 1978 through ... Id. In addition, Illinois courts also ... class of persons. Farm Credit Bank of St ...
http://www.irstaxattorney ...eyances_part1_p2.html |
11. Information and Misinformation about Federal Tax Burdens - 1/21/99
January 21, 1999 Information and Misinformation about Federal Tax Burdens by Iris J. Lav The percentage of income that typical middle-class families pay in federal taxes is often overstated. For ...
http://www.cbpp.org/1-21-99taxburden.htm |
12. Texas homestead tax exemption
... tax, establishing Farm and Ranch Risk ... www.dallascad.org/Exemptions.aspx Cached ... law.onecle.com/texas/tax/11.261.html Cached ... The homestead exemption sales tax (HEST) in some ...
http://737.4ev2cl.info/ |
13. Ethanol tax credits
... are either tax exemptions or tax credits ... http://www.illinois.gov ... is a $1.40/gal EtOH tax credit (fed ... community state farm insurance la ... value advertising sales executive alcohol ...
http://4053.nxd10i.info/ |
14. Know Your County Government
... be recorded so that tax rolls can be ... districts, exemptions, and billing ... compiles all sales data on ... to the State of Illinois Department of ... each year. Farm buildings are ...
http://www.livingstoncoun ...ounty_government1.htm |
15. Index of Cato Daily Dispatches
... U.S. steel tariff exemptions, and New York's ... Congress' pork barrel farm bill, the Pentagon is ... April 15, 2002: Tax Day 2002 comes with the ... of more audits, Illinois' death penalty ...
http://www.cato.org/dispa ...spatch-index2002.html |
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