Itemized Deductions – State of Illinois Sales Tax
We are retired, and are residents of Illinois. We take Itemized Deductions on Schedule A. Because our income is all retirement income, we do not pay State of Illinois Income Tax. However, we do pay State of Illinois sales tax on all purchases. I have a complete record of all of my sales tax, which usually is near $2,000.00. I am allowed to itemize the sales tax on Schedule A, Line 5 a
“State and local income taxes or general sales taxes. You may include either income takes or general sales taxes on line 5a, but not both. If you elect to include general sales taxes instead of income taxes, check this box.”
Terry Says
No, no — you will not itemize your tax return this year. In fact, you can file the tax form for seniors 1040-SR. You get a standard deduction of $12,500 each, and that more than covers the sales taxes you pay. So you don’t have to keep track of sales taxes in the future.
