Paying tax...means saving tax?

The New Sales Tax Deduction

You've probably heard that residents of states with no personal income tax will now be able to deduct sales tax on their returns. It sounds like they've gotten this one right, folks. The IRS will provide a table for us to use to calculate your deduction, based on household size and income level, so you don't have to keep each receipt for the year (and you definitely don't need to bring them all to your tax appointment!)

In addition to the table amounts, you'll be able to deduct sales tax on any big ticket items like cars, boats, etc. We have to leave it at "etc." for now, because the IRS hasn't yet issued their final rules detailing this deduction. Be sure to check back later for more on this new savings opportunity.