Friday, April 1, 2011

How to calculate Sales Taxes when a move is involved

Q.  We want to take advantage of the sales tax deduction, as our state has no income taxes. The problem is we moved 3 times last year to different counties and the sales tax rate differs by county. Is there an easy way to do this, or do I just make an estimate? FG, Texas

A.  You're in luck! Believe it or not, just this week I had a new client come in where there were no state income taxes paid, and I wanted to use the sales tax deduction. This client moved late last year, from one county to another. Taking a chance, I used the IRS Sales Tax Deduction Calculator. It couldn't have been easier. Simply start on this link by hitting the "continue" button located on the lower right, and follow instructions. You can put in moves, along with dates, and the zip codes involved, and finally, the right answer pops out. I printed out the answer and put it into my clients file for future access if necessary.

1 comment:

  1. It's nice to know how to calculate sales taxes when a move is involved. Thanks a lot for sharing.

    sr&ed tax credit

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