Instructions For Schedule A (Form 1040) - Itemized Deductions

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State and Local Income

vehicle. Do not include sales taxes paid on

Nontaxable part of IRA, pension, or

items used in your trade or business.

annuity distributions. Do not include rollo-

Taxes

vers.

You must keep your actual re-

If you elect to deduct state and local income

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Public assistance payments.

ceipts showing general sales

taxes, you must check box a on line 5.

The exemptions column refers to the num-

taxes paid to use this method.

Include on this line the state and local in-

ber of exemptions claimed on Form 1040,

come taxes listed below.

line 6d.

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Refund of general sales taxes.

If you re-

State and local income taxes withheld

What if you lived in more than one

ceived a refund of state or local general

from your salary during 2011. Your

state? If you lived in more than one state

sales taxes in 2011 for amounts paid in

Form(s) W-2 will show these amounts.

during 2011, look up the table amount for

2011, reduce your actual 2011 state and

Forms W-2G, 1099-G, 1099-R, and

each state using the above rules. If there is

local general sales taxes by this amount. If

1099-MISC may also show state and local

no table for your state, the table amount is

you received a refund of state or local gen-

income taxes withheld.

considered to be zero. Multiply the table

eral sales taxes in 2011 for prior year

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State and local income taxes paid in

amount for each state you lived in by a

purchases, do not reduce your 2011 state

2011 for a prior year, such as taxes paid

fraction. The numerator of the fraction is

and local general sales taxes by this

with your 2010 state or local income tax

the number of days you lived in the state

amount. But if you deducted your actual

return. Do not include penalties or interest.

during 2011 and the denominator is the to-

state and local general sales taxes in the

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tal number of days in the year (365). Enter

State and local estimated tax pay-

earlier year and the deduction reduced your

the total of the prorated table amounts for

ments made during 2011, including any

tax, you may have to include the refund in

each state on line 1. However, if you also

part of a prior year refund that you chose to

income on Form 1040, line 21. See Recov-

lived in a locality during 2011 that imposed

have credited to your 2011 state or local

eries in Pub. 525 for details.

a local general sales tax, do not enter the

income taxes.

Optional Sales Tax Tables

total on line 1. Instead, complete a separate

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Mandatory contributions you made to

worksheet for each state you lived in and

the California, New Jersey, or New York

Instead of using your actual expenses, you

enter the prorated amount for that state on

can use the 2011 Optional State and Certain

Nonoccupational Disability Benefit Fund,

line 1.

Rhode Island Temporary Disability Benefit

Local Sales Tax Table and the 2011 Op-

Example. You lived in State A from

tional Local Sales Tax Tables for Certain

Fund, or Washington State Supplemental

January 1 through August 31, 2011 (243

Workmen’s Compensation Fund.

Local Jurisdictions at the end of these in-

days), and in State B from September 1

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structions to figure your state and local

Mandatory contributions to the

through December 31, 2011 (122 days).

general sales tax deduction. You may also

Alaska, California, New Jersey, or Penn-

The table amount for State A is $500. The

be able to add the state and local general

sylvania state unemployment fund.

table amount for State B is $400. You

sales taxes paid on certain specified items.

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Mandatory contributions to state fam-

would figure your state general sales tax as

To figure your state and local general

ily leave programs, such as the New Jersey

follows.

sales tax deduction using the tables, com-

Family Leave Insurance (FLI) program and

plete the State and Local General Sales Tax

the California Paid Family Leave program.

State A:

$500 x 243/365 =

$333

Deduction Worksheet or use the Sales Tax

State B:

$400 x 122/365 =

134

Do not reduce your deduction by any:

Deduction Calculator on the IRS website.

Total

$467

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State or local income tax refund or

To use the Sales Tax Deduction Calculator,

credit you expect to receive for 2011, or

go to IRS.gov and enter “sales tax deduc-

If none of the localities in which you

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tion calculator” in the search box.

lived during 2011 imposed a local general

Refund of, or credit for, prior year

sales tax, enter $467 on line 1 of your

state and local income taxes you actually

If your filing status is married

received in 2011. Instead, see the instruc-

worksheet. Otherwise, complete a separate

filing separately, both you and

worksheet for State A and State B. Enter

tions for Form 1040, line 10.

your spouse elect to deduct

$333 on line 1 of the State A worksheet and

sales taxes, and your spouse

State and Local General

$134 on line 1 of the State B worksheet.

elects to use the optional sales tax tables,

Sales Taxes

you also must use the tables to figure your

If you checked the “No” box, enter

Line 2.

state and local general sales tax deduction.

-0- on line 2, and go to line 3. If you

If you elect to deduct state and local general

checked the “Yes” box and lived in the

sales taxes, you must check box b on line

Instructions for the State and

same locality for all of 2011, enter the ap-

5. To figure your deduction, you can use

Local General Sales Tax

plicable amount, based on your 2011 in-

either your actual expenses or the optional

Deduction Worksheet

come and exemptions, from the 2011

sales tax tables.

Line 1.

If you lived in the same state for all

Optional Local Sales Tax Tables for Cer-

Actual Expenses

of 2011, enter the applicable amount, based

tain Local Jurisdictions for your locality.

on your 2011 income and exemptions, from

Read down the “At least – But less than”

Generally, you can deduct the actual state

the 2011 Optional State and Certain Local

columns for your locality and find the line

and local general sales taxes (including

Sales Tax Table for your state. Read down

that includes your 2011 income. See the

compensating use taxes) you paid in 2011

the “At least – But less than” columns for

instructions for line 1 of the worksheet to

if the tax rate was the same as the general

your state and find the line that includes

figure your 2011 income. The exemptions

sales tax rate. However, sales taxes on

your 2011 income. If married filing sepa-

column refers to the number of exemptions

food, clothing, medical supplies, and motor

rately, do not include your spouse’s in-

claimed on Form 1040, line 6d.

vehicles are deductible as a general sales

come. Your 2011 income is the amount

tax even if the tax rate was less than the

What if you lived in more than one lo-

shown on your Form 1040, line 38, plus

general sales tax rate. If you paid sales tax

cality? If you lived in more than one local-

any nontaxable items, such as the follow-

on a motor vehicle at a rate higher than the

ity during 2011, look up the table amount

ing.

general sales tax rate, you can deduct only

for each locality using the above rules. If

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the amount of tax that you would have paid

there is no table for your locality, the table

Tax-exempt interest.

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at the general sales tax rate on that vehicle.

amount is considered to be zero. Multiply

Veterans’ benefits.

Motor vehicles include cars, motorcycles,

the table amount for each locality you lived

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Nontaxable combat pay.

motor homes, recreational vehicles, sport

in by a fraction. The numerator of the frac-

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Workers’ compensation.

utility vehicles, trucks, vans, and off-road

tion is the number of days you lived in the

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vehicles. Also include any state and local

Nontaxable part of social security and

locality during 2011 and the denominator is

general sales taxes paid for a leased motor

railroad retirement benefits.

the total number of days in the year (365).

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Instructions For Schedule A (Form 1040) - Itemized Deductions - 2011 Page 3

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