Page 343 - Individual Forms & Instructions Guide

10:55 - 3-Jan-2023
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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
structions for Schedule 1 (Form 1040), by this amount. However, if you deduc- Income. Your 2022 income is the
line 1. ted your actual state and local general amount shown on your Form 1040 or
State and Local General sales taxes in the earlier year and the de- 1040-SR, line 11, plus any nontaxable
duction reduced your tax, you may have
items, such as the following.
Sales Taxes to include the refund in income on • Tax-exempt interest.
If you elect to deduct state and local Schedule 1 (Form 1040), line 8z. See • Veterans' benefits.
general sales taxes instead of income Recoveries in Pub. 525 for details. • Nontaxable combat pay.
taxes, you must check the box on • Workers' compensation.
line 5a. To figure your state and local Optional Sales Tax Tables • Nontaxable part of social security
general sales tax deduction, you can use Instead of using your actual expenses, and railroad retirement benefits.
either your actual expenses or the op- you can use the 2022 Optional State • Nontaxable part of IRA, pension,
tional sales tax tables. Sales Tax Table and the 2022 Optional or annuity distributions. Don't include
Local Sales Tax Tables at the end of rollovers.
Actual Expenses these instructions to figure your state • Public assistance payments.
Generally, you can deduct the actual and local general sales tax deduction. What if you lived in more than one
state and local general sales taxes (in- You may also be able to add the state state? If you lived in more than one
cluding compensating use taxes) you and local general sales taxes paid on cer- state during 2022, use the following
paid in 2022 if the tax rate was the same tain specified items. steps to figure the amount to put on
as the general sales tax rate. To figure your state and local general line 1 of the worksheet.
Food, clothing, and medical supplies. sales tax deduction using the tables, 1. Look up the table amount for
Sales taxes on food, clothing, and medi- complete the State and Local General each state using the rules stated earlier.
cal supplies are deductible as a general Sales Tax Deduction Worksheet or use (If there is no table for a state, the table
sales tax even if the tax rate was less the Sales Tax Deduction Calculator at amount for that state is considered to be
than the general sales tax rate. IRS.gov/SalesTax. zero.)
Motor vehicles. Sales taxes on motor If your filing status is married 2. Multiply the table amount of each
vehicles are deductible as a general sales ! filing separately, both you and state by a fraction, the numerator of
tax even if the tax rate was different than CAUTION your spouse elect to deduct which is the number of days you lived in
the general sales tax rate. However, if sales taxes, and your spouse elects to the state during 2022 and the denomina-
you paid sales tax on a motor vehicle at use the optional sales tax tables, you al- tor of which is the total number of days
a rate higher than the general sales tax, so must use the tables to figure your in the year (365).
you can deduct only the amount of the state and local general sales tax deduc- 3. If you also lived in a locality dur-
tax that you would have paid at the gen- tion. ing 2022 that imposed a local general
eral sales tax rate on that vehicle. In- sales tax, complete a separate worksheet
clude any state and local general sales for each state you lived in using the pro-
taxes paid for a leased motor vehicle. Instructions for the State and rated amount from step (2) for that state
Motor vehicles include cars, motor- Local General Sales Tax on line 1 of its worksheet. Otherwise,
cycles, motor homes, recreational vehi- Deduction Worksheet combine the prorated table amounts
cles, sport utility vehicles, trucks, vans, from step (2) and enter the total on
and off-road vehicles. Line 1. If you lived in the same state line 1 of a single worksheet.
for all of 2022, enter the applicable
You must keep your actual re- amount, based on your 2022 income and Example. You lived in State A from
! ceipts showing general sales family size, from the 2022 Optional January 1 through August 31, 2022 (243
CAUTION taxes paid to use this method. days), and in State B from September 1
State Sales Tax Table for your state. through December 31, 2022 (122 days).
Trade or business items. Don't include Read down the “At least–But less than” The table amount for State A is $500.
sales taxes paid on items used in your columns for your state and find the line The table amount for State B is $400.
trade or business. Instead, go to the in- that includes your 2022 income. If mar- You would figure your state general
structions for the form you are using to ried filing separately, don't include your sales tax as follows.
report business income and expenses to spouse's income.
see if you can deduct these taxes. Note. The family size column refers to State A: $500 x 243/365 = $333
Refund of general sales taxes. If you the number of dependents listed on State B: $400 x 122/365 = 134
received a refund of state or local gener- page 1 of Form 1040 or Form 1040-SR Total = $467
al sales taxes in 2022 for amounts paid (and any continuation sheets) plus you
in 2022, reduce your actual 2022 state and, if you are filing a joint return, your
and local general sales taxes by this spouse. If you are married and not filing If none of the localities in which you
amount. If you received a refund of state a joint return, you can include your lived during 2022 imposed a local gen-
or local general sales taxes in 2022 for spouse in family size only in certain cir- eral sales tax, enter $467 on line 1 of
prior year purchases, don't reduce your cumstances, which are described in Pub. your worksheet. Otherwise, complete a
2022 state and local general sales taxes 501. separate worksheet for State A and State

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