SALT Report 2048 – Due to legislation recently signed by President Obama, the Washington Department of Revenue announced that taxpayers may continue to deduct state and local sales taxes on their federal tax returns for tax year 2012.
The deduction is only available to taxpayers who itemize their deductions, not to those who take the standard deduction. The deduction is based on the number of exemptions taken and your adjusted gross income. However, taxpayers who have kept all of their receipts can deduct the actual amount of sales and use tax paid. Taxpayers who haven’t kept their receipts can use the IRS’ online Sales Tax Deduction Calculator or the Optional State Sales Tax Tables to help you determine the amount of general sales tax to claim on your return.
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