Is state sales tax deductible on Federal income tax?
1. Is this deduction still allowed - and specifically is it expected to be in place in tax year 2017 and beyond?
2. Are you still allowed to choose between an estimated amount based on your income or the actual amount based on receipts?
3. If you choose the estimated calculation, can you still add tax from major purchases such as cars on top of the estimated amount?
I haven't itemized my federal deductions since 2011 but recently purchased a house and expect to itemize again starting with tax year 2017 and beyond (due to the mortgage interest). I live in Washington state where we don't have state income tax so there's no deduction for income tax, just possibly sales tax.
I basically want to know if it would be a good idea to start saving all my receipts with sales tax starting in January 2017 to possibly boost my federal tax deduction.