savingadvice

The American Jobs Creation Bill (2004) gives individual taxpayers who file itemized deductions (Schedule A) on their federal tax return two options: 1) to deduct their state and local sales tax or 2) to deduct their state income taxes on their 2004 tax return.

For those living in the states that currently have no state income taxes (Florida, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming) the choice is simple and they should opt for the sales tax option. Anyone living in the other 43 states, however, will have to take the time to decide which of the two options is most beneficial in saving them money on their taxes.
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New Tax Deductions