Can a retiree deduct sales tax on a new car? What other sales tax can a retiree deduct?
- SlickterpLv 78 months ago
Anyone can, if they itemize. It would almost never be worth it.
Any and all sales tax you have a record of.
- STEVEN FLv 78 months ago
Being a retiree is IRRELEVANT.
In the US, at the Federal level you can deduct either ALL state and local sales tax, or all state and local income tax, up to a $10,000 limit. Unless you can claim other itemized deductions, that is less than the $12,000 standard deduction and it isn't worth itemizing.
- JudyLv 78 months ago
State and local sales tax can be deducted but only if you itemize, so for most people the answer is no.
- EvaLv 78 months ago
Sales tax is only deductible if you have enough other deductions to itemize. The sales tax deduction is calculated by using the IRS chart + major purchase items, like a car or boat. It can also be calculated by adding up all the receipts that had sales tax on them. With the new higher standard deduction, few people qualify to itemize.
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- Anonymous8 months ago
No extra benefit for being retired. A new car is a bad idea for most people.
- RichardLv 78 months ago
I don't know of any jurisdiction in the US that offers sales tax relief on senior citizens.
However, my state of Illinois does offer seniors some tax relief on INCOME tax on retirement fund and social security proceeds and property taxes.
- Wayne ZLv 78 months ago
If you have enough deductions to itemize and you choose to deduct your state/local sales taxes instead of your state/local income taxes, you can get the amount from the IRS tables and add the sales tax from the car to that amount.
However, chances are, you won't have enough deductions to itemize beginning in tax year 2018. 90+% of tax payers do not have enough.
- A HunchLv 78 months ago
A retiree is no different than anyone else.
If you use Schedule A instead of the standard deduction, you can deduct your sales tax paid.
- pearlmarLv 78 months ago
No you can't deduct sale tax on anything.
- choko_canyonLv 78 months ago
Sales tax is non-deductible.