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 Vermont Streamlined Sales Tax
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Our Best Web Links For Vermont Streamlined Sales Tax
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1. UTAH STATE TAX
... Free: 800.662.4335. Forms; Streamlined. www.tax.utah.gov/ - 13k ... be on top of the 4.75 percent sales tax the state already imposes ... Accounts; Utah State Tax Commission; Vermont Department of. www ...
http://utah.taxs.ws/ |
2. File 2003 income tax
... Income Tax Forms Vermont Business and ... Dutch Appeals Court of sales occurring after ... help.com irs site tax comes up such funds for ... rental real estate a Streamlined system encourage ...
http://2008.nhal.info/ |
3. VGA ::: The Vermont Grocers' Association
... less than $500,000 in sales ). Easily pay your ... to offer members a streamlined check collection ... PayData is a Vermont company offering a ... include payroll checks, tax filings, reports, new ...
http://www.vtgrocers.org/membership.html |
4. ATR: Press Releases: State 2005 Index
... to Membership in the Streamlined Sales Tax Project 03/27/06 ... Legislators Urging Opposition to Tax Increases to Fund Pro-Sport ... Session 03/17/06 Letter to Vermont Legislators Urging Opposition ...
http://www.atr.org/state/alerts/ |
5. Cabinet hardware specialty
... Cabinet and Countertop sales, service and parts ... The MSDS for arizona tax extension serious with ... between the compact streamlined system with as many ... s high, lake champlain vermont real estate is ...
http://5119.kyrvtlw.info/ |
6. http://www.circusinamerica.org/cocoon/circus/xml?targ=b6
... with the 1989 edition of Vermont's little Circus Smirkus, sums ... He introduced computers and streamlined the whole operation ... his circus to Florida State as a tax write-off and thus set the ...
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7. Streamlined Sales Tax Project
... Dakota Tennessee Texas Utah Vermont Virginia Washington West ... of Tax Administrators Multistate Tax Commission Nat'l Conference of ... Copyright © 2005 The Streamlined Sales Tax Governing Board, Inc ...
http://www.streamlinedsalestax.org/ |
8. The Progress & Freedom Foundation Blog
... a certain band from Vermont. Rural ILECs do ... for concession sales to high-end ticket ... not figured out how to tax VoIP? (Not many ... associated with Äústreamlined use tax ...
http://www.pff.org/weblog ...04_12_01_archive.html |
9. Voices | Colorado
... > Tennessee > Utah > Vermont > Virginia > Washington ... separate programs into one streamlined system;î and give ìa ... the income tax twice;î and, reduced the sales tax. see also ...
http://www.voicesforameri ...olorado1/Colorado.htm |
10. Streamlined Sales Tax Status - Yetter Consulting Services, Inc. - 312-701-1800
... are considered as Streamlined Sales Tax Implementing States (SSTIS). Arkansas Ohio Indiana Oklahoma Iowa South Dakota Kansas Tennessee Kentucky Texas Michigan Utah Minnesota Vermont Nebraska ...
http://www.salestaxinstit ...-sales-tax-status.jsp |
11. Property tax revenue
... a=190&bc=0&c=35438 Cached - Similar pages Property Tax and Sales & Use Tax News - Georgia tax revenue ... Sales tax revenue fell 7 percent to $343.8 million. Property tax revenue jumped 30.6 percent ...
http://1076.mwe7hq.info/ |
12. Tax Seminars
... And Use Tax - New Brunswick, NJ - January 17, 2007 Sales And Use Tax In Vermont: A Critical Analysis And The Streamlined Sales Tax Agreement - Burlington, VT - December 12, 2006 Sales And Use Tax: A ...
http://www.lorman.com/sit ...seminars.php?topic=ST |
13. MarketWise - Federal Reserve Bank of Richmond
... 5 million people during 1997. Sales generated by these businesses ... loan guarantee commitment, streamlined application process, and a ... District Office 1110 Vermont Avenue, N.W., 9 th Floor P.O ...
http://www.richmondfed.or ...etwise_topics/mw4.cfm |
14. Independent Business Legislative Platform - American Independent Business Al...
http://www.amiba.net/platform.html
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15. New Rules Project - Information Resources
... everyone benefits from keeping Vermont's economy local. The Economic ... e-commerce controversy. Internet Tax Legislation: Distinguishing ... big-box retailers The Streamlined Sales Tax Project Community ...
http://newrules.org/misc/resources.htm |
16. Web CPA - Sales Tax Slogs On
... about eight months since the Streamlined Sales Tax Project - the ... would create a simplified sales and use tax collection system that ... of the project, but only Vermont is expected to pass such ...
http://www.avalara.com/index.cfm/page/webcpa_stso |
17. The Vermont Retail Association :::: Serving the Vermont retail community sin...
... info? email us * Information Meetings on Streamlined Sales Tax Changes * Read the Current Retail ... ... More news >>> email us! © Æ 1968 - 2005 vermont retail association - all rights reserved
http://www.vtretailers.com/ |
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