Common questions about Schedule A itemized deductions, taxes in Lacerte

Taxpayers have the option of deducting state and local general sales taxes instead of state and local income taxes, as an itemized deduction on Line 5 of Schedule A.

Lacerte automatically optimizes between the greater of sales tax or income tax to Schedule A. To override the optimization performed by the program, use the input in 1=force income tax, 2=force sales tax, blank=optimize (code 89) in Screen 25, Itemized Deductions (Sch. A).

Generally, to figure the state and local sales tax deduction, a taxpayer can use actual expenses or the Optional State Sales Tax Tables. Lacerte automatically optimizes between state and local sales taxes paid and those determined under the table method. To override the optimization performed by the program, use the input in 1=force actual, 2=force tables, blank=optimize (code 90) in Screen 25, Itemized Deductions (Sch. A).

IRS instructions for Itemized Deductions offer more information on figuring the sales tax deduction using the sales tax tables.

Also, refer to the IRS Sales Tax Deduction Calculator.

Below, you'll find answers to frequently asked questions about Schedule A, itemized deductions, taxes in Lacerte:

• How to deduct state and local sales tax in Lacerte
• Local Sales Tax Rates For Schedule A Line 5 (Form 1040)