About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

1 Nick Kasprak, States Vary Widely in Number of Taxpayers Deducting State or Local Sales Taxes 1 (2012)

handle is hein.taxfoundation/ffciixz0001 and id is 1 raw text is: FOUNDATION Fiscal Fact Jan 10, 2012 No. 288 States Vary Widely in Number of Taxpayers Deducting State or Local Sales Taxes Texas Has Highest Percent of Taxpayers Choosing Sales Tax Deduction By Nick Kasprak Introduction Taxpayers who itemize deductions have the option of deducting state and local taxes from their income. In doing so, each individual taxpayer must decide to deduct either the income tax withheld from his or her wages, or the total sales tax he or she paid during the tax year. Individuals who choose to deduct sales taxes have the additional option of reporting the exact amount (if they saved all their receipts) or using an estimate from the IRS that depends on their state and their income level. The option to deduct sales tax, rather than income tax, is a temporary provision that must be extended each year. States vary widely in the percentage of taxpayers who use each deduction. In general, more taxpayers elect to deduct income taxes than sales taxes. However, as one might expect, states that have no (or low) income taxes tend to see most taxpayers deducting sales taxes instead. Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming are all states in which over half of the taxpayers elect to deduct state and local sales taxes, rather than income taxes, on their federal return, and these are all states that have either a very limited income tax (in the case of Tennessee) or no income tax at all. (The small number of taxpayers who do deduct income taxes in these states likely owe them to a different state than the one listed as their home on their federal return.) Taxpayers in these states therefore extended each year. States with the highest percentage choosing sales over income tax deduction, ofallfilers claiming state and local tax deduction Texas Rank: #1J Florida Rank: #2 Tennessee Rank: #3 Nevada Rank: #4 Wyoming Rank: #5 90% South Dakota 9% Rank: #6 89% iWashington Rank: #7 87% Alaska 6% Rank: #8 86% Arizona 4% Rank: #9 84 m'ssissippi ii~ ~ ~ R nk #10iiiiiiiiiiiiiiiiiiiii ;i i 83% 83% 5-g1% 26% 23% have the most to lose should this option not be The eight tables below summarize the latest data from the IRS, for tax year 2009. A: I - . I ' '. , 6., , -, . :1 ,, : 4 ),- * , 'V

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most