Sears has agreed to make a point-of-sale deduction, enabling customers to claim the rebate when they buy, but SDG&E is still working to convince the four other retailers to do the same, Winn said.
After the operations and sales deductions, add income from interest earned on funds.
Note that the sales tax deduction can also be claimed by itemizers who deduct income tax, but not those who deduct sales tax, on their Schedule As, forcing the creation of an 11-line worksheet on the back of Schedule A, where Schedule B for interest and ordinary dividends used to reside.
Indeed, research firm R. L. Polk & Co. recently estimated that the government stimulus plan, which includes a sales tax deduction for new car buyers, will boost industry sales by only 94,000 vehicles this year, amounting to an average $330 rebate on each new car purchased.
While it's always good to save receipts for exact numbers, the Internal Revenue Service IRSS) features a sales tax deduction calculator that allows you to estimate your sales taxes for the year.
But anyone claiming the standard sales tax deduction shown in the table may also be eligible to calculate and claim a local sales tax break.
And don't forget the vehicle sales tax deduction.
In addition, there is a need to extend certain expiring tax provisions, including the research and development credit used by many businesses, the state sales tax deduction and the college tuition deduction.
The sales tax deduction is estimated to be worth only about $300 to consumers, and the government estimates it'll boost sales by only about 100,000 vehicles, or 1% of current industry volume.
And here's where it gets really bizarre: It's possible some taxpayers in states with income taxes, who haven't made a big purchase, might actually be better off claiming a smaller sales tax deduction than a bigger income tax deduction.
Taking the sales tax deduction will most likely make sense for people who live in states without income tax.
