| If you itemize your deductions, you may be in for a | | | | to offer a bit of help. |
| windfall on this years tax. Yep, Congress has renewed | | | | The IRS has an excellent website. Yes, I am shocked |
| the optional sales tax deduction. Of course, you have | | | | to. Regardless, the agency is offering a free sales tax |
| to figure it out. | | | | deduction calculator on the site. The beauty of the |
| If you itemize your tax deductions, you already know | | | | calculator is it already has the state and local sales tax |
| that you can claim a deduction for the total state | | | | rates built into the database. As a result, you don't |
| income taxes you paid during the year. Depending on | | | | have to go hunt and peck for them. |
| your state, that can be a very large tax deduction. But | | | | People are often leery whenever the IRS offers |
| what if you live in a state that doesn't collect income | | | | anything free. In truth, the IRS has become much |
| taxes? For the last couple of years, you could claim a | | | | friendlier the last few years, just don't ask someone |
| deduction for the total state and local sales tax you | | | | being audited. Regardless, you can use the sales tax |
| paid on your purchases. In fact, you can do this | | | | calculator without fear. All information is anonymous. |
| regardless of whether you live in a state that collects | | | | The IRS records nothing regarding your personal |
| income tax or not. | | | | information. They don't even ask for it. In short, using it |
| The state sales tax deduction was set to expire at | | | | will not come back to haunt you! |
| the end of the fiscal 2005 year. At the last minute, | | | | If you itemize, it is in your best interest to determine |
| Congress renewed it. All and all, this is great news. | | | | whether the sales or income tax deduction will save |
| One problem does exist, however. You need to figure | | | | you more money. Now you can use the free |
| out which deduction is going to be bigger, you state | | | | calculator provided by the IRS to make the |
| income tax or sales tax deduction. Well, the IRS is here | | | | determination quicker. |