State Income Tax

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Can I deduct sales tax on my returns?

State Income Tax

If you live in a state that has a sales tax but no state income tax, such as Florida, Nevada or Wyoming, you actually can deduct sales tax paid throughout the year. American Jobs Creation Act of 2004 gives taxpayers in certain states that have no income tax the option to claim state and local sales taxes paid when they itemize deductions. Use the IRS estimation chart to assist you if necessary. Please remember that this option is available for 2005 federal returns only.



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