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Texas>>Sales tax deduction from Federal income tax

Discussion in 'Texas' started by h30338, Dec 18, 2013.

  1. h30338

    h30338 Member

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    Just wanted to check this out with people on the forum who live in Texas and bought their Model S this year.

    For 2013 I learned that I can deduct my sales tax paid in Texas for the Model S for my Federal income tax calculations.

    This should result in an unexpected benefit to me since i've paid a decent amount in income taxes already for the year.
     
  2. montgom626

    montgom626 Active Member

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    WOW? Is something anyone can do? Or just EV buyers in Texas?
     
  3. h30338

    h30338 Member

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    as far as i understand, for 2013, you can either deduct your state income tax or all your sales tax paid.

    - - - Updated - - -

    i think it is a federal thing.
     
  4. austinEV

    austinEV Active Member

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    Yeah, you choose to itemize your sales taxes or use the estimated value. I tell turbotax to just use the formula. For last year that was a mere $1500, so it looks like this year we can "itemize" and be way ahead, even if we just use the car.

    I wonder if you can combine them. After all, I still spent the ~$1500 too.
     
  5. Chris TX

    Chris TX Active Member

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    Yes, every year when I do TurboTax, when it comes to state sales tax, it asks me "Did you make any large purchases?" This year, I get to claim that nice, fat check I just wrote Collin county today.
     
  6. kalikgod

    kalikgod Member

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    Thanks for starting this thread h30338. I confirmed with my accountant that this is indeed true, so it makes particularly good sense in states with no state income tax (Texas, FL, etc.).

    Unfortunately my Model S purchase was not this year (hopefully June 14, when my lease expires), but we did get my wife a new car this spring.

    Another tip for Texans that are planning to itemize their sales tax, Amazon started charging sales tax in Texas this year. It is real easy to go grab the list of sales tax paid to Amazon to add onto the list.
     
  7. NonChaotic

    NonChaotic Member

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    Sadly, this deduction will go away in 2014.
     
  8. MrIanB

    MrIanB Member

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    Do we get to claim the whole sales tax amount, or just 25% of the sales tax amount?

    Ian B
     
  9. jerry33

    jerry33 S85 - VIN:P05130 - 3/2/13

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    It's a deduction from income, not a tax credit. The percentage it takes off the amount you owe depends upon your tax rate.
     
  10. pete8314

    pete8314 Vendor

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    How do you get this info from Amazon? I had a quick look, but don't see an easy way to find out how much sales tax I paid them last year...
     
  11. Chris TX

    Chris TX Active Member

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    Go here:
    Amazon.com Help: Create an Order History Report

    Create a report for all of 2013
    View the report
    Column X is your friend ;)
     
  12. pete8314

    pete8314 Vendor

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    Great, thanks Chris. Now if only Costco and Target would to the same thing, I'd be all set!
     
  13. Chris TX

    Chris TX Active Member

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    CRAP! We can't file until 1/30 due to the IRS not having the electric vehicle credit form finished yet. I'm ready to send NOW!
     

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