Washington residents: Your sales tax break returns | OregonLive.com

It's Only Money and CPAs everywhere are still digesting all the tax changes and extensions enacted as part of yesterday's fiscal cliff deal.

But one thing for sure: Washington residents will get to deduct state and local sales taxes for 2012 and 2013.

That goodie had expired at the start of last year. It's important to Washington residents, who don't pay state income taxes. Taxpayers who itemize get to deduct those income taxes, to the tune of $262.7 billion in 2010. Congress in 2004 restored the break for state and local sales taxes after eliminating it in 1986.

To claim it, you must itemize your deductions on Schedule A and file Form 1040. Last year, federal taxpayers claimed $16.5 billion in state and local sales taxes, IRS figures show.

Do you have any questions on how the fiscal cliff deal impacts your taxes? Send 'em It's Only Money's way, either in the comments below or by e-mail. Check back on the blog for more details.

Source: http://www.oregonlive.com/finance/index.ssf/2013/01/washington_residents_you_get_y.html

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