In all the consternation over the federal fiscal cliff there hasn’t been much said about the deduction for sales taxes on individual tax returns. In case you have forgotten, the deduction expired in 2011. It has not been renewed for 2012, so as it stands today you can’t take the deduction on your 2012 federal income tax return.
Sen. Kay Bailey Hutchison has been the deduction’s champion for years, but if she can’t get it done by Dec. 31, 2012 it will be up to someone else. Brad Watson with WFAA reports that about 20% of Texans that filed income tax returns claimed the deduction in 2010 “across all income levels, especially the middle class.” Did you buy a new car this year? Were you counting on the sales tax deduction? You’d better call your congressperson. See Watson’s article here.