A Sales Tax Exemption Expiring on December 31, 2013
- Dec 11, 2013 | Gail Cole
On December 31, 2013, the general sales tax exemption allowed for residents of states without an income tax will expire. This will affect people who normally itemize deductions on federal income tax Schedule A (Form 1040).
The seven states without any income tax are: Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming. Tennessee and New Hampshire tax only dividend and interest income.
Savvy taxpayers in these states should consider purchasing long-coveted big-ticket items before the 31st. Been thinking about replacing your television, computer, car? T’is the season.
Congress often extends expiring tax breaks, though it often waits until the final hour to do so. It’s possible this sales tax exemption will be extended--but unlikely. Other issues, like the Affordable Health Care Act and the budget, are front and center this year.
Expiring exemptions, new laws, rate changes: how do you keep track of sales tax changes?