Publication 600: Optional State Sales Tax Tables; Main Contents

This is archived information that pertains only to the 2004 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.

Table of Contents

How To Use the Optional State Sales Tax Tables
- Example.
- What If You Lived in More Than One Place?

How To Use the Optional State Sales Tax Tables

To figure your state and local general sales tax deduction using the Optional State Sales Tax Tables, follow Steps 1 through 5 and complete the worksheet below.

If your filing status is married filing separately, both you and your spouse elect to deduct sales taxes, and your spouse elects to use the Optional State Sales Tax Tables, you also must use the tables to figure your state and local general sales tax deduction.

Step 1. Find the state where you lived in 2004 in the Optional State Sales Tax Tables shown on pages 3 through 5. But see What If You Lived in More Than One Place, on page 3, if applicable.

Step 2. Read down the “At least – But less than” columns for your state and find the line that includes your 2004 total available income. Total available income is the amount shown on your Form 1040, line 37, plus any nontaxable items, such as the following.

Tax-exempt interest.
Veterans' benefits.
Nontaxable combat pay.
Workers' compensation.
Nontaxable part of social security and railroad retirement benefits.
Nontaxable part of IRA, pension, or annuity distributions. Do not include rollovers.
Public assistance payments.

Note. If your filing status is married filing separately, use your own total available income. Follow the above instructions, beginning with the amount shown on your Form 1040, line 37.

Step 3. Go to the column that includes the total number of exemptions you claimed on your Form 1040, line 6d. Enter the amount from that column on line 1 of the worksheet below.

Step 4. If your locality imposes a general sales tax, complete lines 2a through 2d of the worksheet below. Otherwise, skip lines 2a through 2c of the worksheet, enter -0- on line 2d, and go to line 3.

Example. State A imposes a 6.5% (.065) general sales tax. City B in State A imposes an additional 0.5% (.005) general sales tax. To figure your local general sales taxes, enter .005 (the local general sales tax rate) on line 2a of the worksheet below. Enter .065 (the state general sales tax rate) on line 2b. Divide the amount on line 2a (.005) by the amount on line 2b (.065) and enter the result (.077) on line 2c. If the amount on line 1 of the worksheet is $1,000, multiply this amount by the amount on line 2c (.077) and enter the result, $77, on line 2d.

Step 5. Enter on line 3 of the worksheet below any state and local general sales taxes paid on the following specified items.

A motor vehicle (including a car, motorcycle, motor home, recreational vehicle, sport utility vehicle, truck, van, and off-road vehicle). Also include any state and local general sales taxes paid for a leased motor vehicle. If the state sales tax rate on these items is higher than the general sales tax rate, only include the amount of tax you would have paid at the general sales tax rate.
An aircraft, boat, home (including mobile and prefabricated), or home building materials, if the tax rate was the same as the general sales tax rate.

Do not include sales taxes paid on items used in your trade or business.

State and Local General Sales Tax Deduction Worksheet

(Using the Optional State Sales Tax Tables)

(Keep for Your Records)

1.	State general sales taxes. See Step 1 through Step 3 above			1.
2a.	Local general sales tax rate. If zero, skip lines 2a through 2c, enter -0- on line 2d, and go to line 3	2a.	.
2b.	State general sales tax rate	2b.	.
2c.	Divide line 2a by line 2b. Enter the result as a decimal (rounded to at least three places)	2c.	.
2d.	Local general sales taxes. Multiply line 1 by line 2c			2d.
3.	General sales taxes paid on specified items, if any. See Step 5 above			3.
4.	Deduction for general sales taxes. Add lines 1, 2d, and 3. Enter the result here and on Schedule A (Form 1040), line 5, and be sure to check box b on that line			4.
Note. If you elect to deduct general sales taxes, you cannot deduct your state and local income taxes.

What If You Lived in More Than One Place?

If you lived in more than one state during 2004, multiply the table amount for each state you lived in by a fraction. The numerator of the fraction is the number of days you lived in the state and the denominator is the total number of days in the year (366).

Also prorate any local general sales taxes based on the number of days you resided in the locality for which you are determining the local sales tax deduction.

Example. You lived in State A from January 1 through August 31, 2004 (244 days), and in State B from September 1 through December 31, 2004 (122 days). The table amount for State A is $500. The table amount for State B is $400. You would figure your state general sales tax (line 1 of the worksheet on page 2) as follows.

State A: $500 × 244/366	=	$333
State B: $400 × 122/366	=	133
Total		$466

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