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Q:  May I now take a deduction on my federal income tax return for Washington sales tax?


Washington State residents may deduct state and local general-sales tax on their federal income returns for tax years 2010 and 2011. The sales tax deduction, eliminated in 1986, was restored in 2004, and was extended again in a tax measure signed by President Obama on December 17, 2010.

The deduction is available to taxpayers that itemize deductions, not those who take the standard deduction. The deduction is based on adjusted gross income and number of exemptions claimed. Taxpayers who keep all their receipts can deduct actual sales tax and use tax paid. The IRS has Optional State Sales Tax Tables for taxpayers to know how much sales tax they can deduct without having to keep receipts.

More information
Internal Revenue Service (IRS)
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