This may be the last year that taxpayers who itemize get to choose between deducting their state income taxes or their state sales taxes on their federal tax return. Unless Congress acts, the either-or-state-tax break will expire at the end of the year. In the meantime, if you plan to deduct your sales taxes, buying a big ticket item like a car or a boat before the end of the year can substantially boost your deduction.
For most taxpayers, the state income tax provides a larger deduction. But for residents of states that don't have an income tax, such as Texas or Florida, the sales tax deduction is an easy choice.
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