riceboy

I know that this was allowed in place of your state income tax in 2004 and 2005. Have they voted to continue this through 2006?

juniorbean

iTrader: (5)

Never heard of this. More details?

riceboy

http://www.irs.gov/newsroom/article/...133209,00.html

riceboy

http://www.bankrate.com/brm/itax/20041012b1.asp

juniorbean

iTrader: (5)

Gotcha. No help to me since my sales tax receipts are not higher then my state income tax.

riceboy

looks like it is one of the things they will be voting on next month.

SpeedyV6

For those of us who live in a state with no income tax but high property taxes, I was wondering whether we can deduct both property taxes and sales taxes?

riceboy

yes you could have done that the last two years. they need to vote to expand it to this year

Mike 350Z

Don't they say to only deduct sales tax instead of state income tax if you make a big ticket purchase, like an expensive car or 2 that you have to pay sales tax on? I would assume most people pay more in state income tax than in sales tax, though I'm not sure.

DAROCK

Anything that cuts taxes or expands Bush Tax cuts, you can fogetaboutit.

revitupwriteitoff

To answer your question, Congress has about a week and a half to settle this or the law will expire. So as it stands now, you will not.

For others, there are a few states that have no state income tax, but collect higher taxes of other types including state and local sales taxes (normally combined to be one rate as far as consumers know, but you can deduct both). So while you state income tax payers were getting this nice deduction, we here in Texas and other states got nothing. And will get nothing again, unless something happens soon.