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Aarp Tax Aide Locations

Aarp tax aide locations 1. Aarp tax aide locations   Definitions You Need To Know Table of Contents Other options. Aarp tax aide locations Exception. Aarp tax aide locations Certain terms used in this publication are defined below. Aarp tax aide locations The same term used in another publication may have a slightly different meaning. Aarp tax aide locations Annual additions. Aarp tax aide locations   Annual additions are the total of all your contributions in a year, employee contributions (not including rollovers), and forfeitures allocated to a participant's account. Aarp tax aide locations Annual benefits. Aarp tax aide locations   Annual benefits are the benefits to be paid yearly in the form of a straight life annuity (with no extra benefits) under a plan to which employees do not contribute and under which no rollover contributions are made. Aarp tax aide locations Business. Aarp tax aide locations   A business is an activity in which a profit motive is present and economic activity is involved. Aarp tax aide locations Service as a newspaper carrier under age 18 or as a public official is not a business. Aarp tax aide locations Common-law employee. Aarp tax aide locations   A common-law employee is any individual who, under common law, would have the status of an employee. Aarp tax aide locations A leased employee can also be a common-law employee. Aarp tax aide locations   A common-law employee is a person who performs services for an employer who has the right to control and direct the results of the work and the way in which it is done. Aarp tax aide locations For example, the employer: Provides the employee's tools, materials, and workplace, and Can fire the employee. Aarp tax aide locations   Common-law employees are not self-employed and cannot set up retirement plans for income from their work, even if that income is self-employment income for social security tax purposes. Aarp tax aide locations For example, common-law employees who are ministers, members of religious orders, full-time insurance salespeople, and U. Aarp tax aide locations S. Aarp tax aide locations citizens employed in the United States by foreign governments cannot set up retirement plans for their earnings from those employments, even though their earnings are treated as self-employment income. Aarp tax aide locations   However, an individual may be a common-law employee and a self-employed person as well. Aarp tax aide locations For example, an attorney can be a corporate common-law employee during regular working hours and also practice law in the evening as a self-employed person. Aarp tax aide locations In another example, a minister employed by a congregation for a salary is a common-law employee even though the salary is treated as self-employment income for social security tax purposes. Aarp tax aide locations However, fees reported on Schedule C (Form 1040), Profit or Loss From Business, for performing marriages, baptisms, and other personal services are self-employment earnings for qualified plan purposes. Aarp tax aide locations Compensation. Aarp tax aide locations   Compensation for plan allocations is the pay a participant received from you for personal services for a year. Aarp tax aide locations You can generally define compensation as including all the following payments. Aarp tax aide locations Wages and salaries. Aarp tax aide locations Fees for professional services. Aarp tax aide locations Other amounts received (cash or noncash) for personal services actually rendered by an employee, including, but not limited to, the following items. Aarp tax aide locations Commissions and tips. Aarp tax aide locations Fringe benefits. Aarp tax aide locations Bonuses. Aarp tax aide locations   For a self-employed individual, compensation means the earned income, discussed later, of that individual. Aarp tax aide locations   Compensation generally includes amounts deferred in the following employee benefit plans. Aarp tax aide locations These amounts are elective deferrals. Aarp tax aide locations Qualified cash or deferred arrangement (section 401(k) plan). Aarp tax aide locations Salary reduction agreement to contribute to a tax-sheltered annuity (section 403(b) plan), a SIMPLE IRA plan, or a SARSEP. Aarp tax aide locations Section 457 nonqualified deferred compensation plan. Aarp tax aide locations Section 125 cafeteria plan. Aarp tax aide locations   However, an employer can choose to exclude elective deferrals under the above plans from the definition of compensation. Aarp tax aide locations The limit on elective deferrals is discussed in chapter 2 under Salary Reduction Simplified Employee Pension (SARSEP) and in chapter 4. Aarp tax aide locations Other options. Aarp tax aide locations   In figuring the compensation of a participant, you can treat any of the following amounts as the employee's compensation. Aarp tax aide locations The employee's wages as defined for income tax withholding purposes. Aarp tax aide locations The employee's wages you report in box 1 of Form W-2, Wage and Tax Statement. Aarp tax aide locations The employee's social security wages (including elective deferrals). Aarp tax aide locations   Compensation generally cannot include either of the following items. Aarp tax aide locations Nontaxable reimbursements or other expense allowances. Aarp tax aide locations Deferred compensation (other than elective deferrals). Aarp tax aide locations SIMPLE plans. Aarp tax aide locations   A special definition of compensation applies for SIMPLE plans. Aarp tax aide locations See chapter 3. Aarp tax aide locations Contribution. Aarp tax aide locations   A contribution is an amount you pay into a plan for all those participating in the plan, including self-employed individuals. Aarp tax aide locations Limits apply to how much, under the contribution formula of the plan, can be contributed each year for a participant. Aarp tax aide locations Deduction. Aarp tax aide locations   A deduction is the plan contributions you can subtract from gross income on your federal income tax return. Aarp tax aide locations Limits apply to the amount deductible. Aarp tax aide locations Earned income. Aarp tax aide locations   Earned income is net earnings from self-employment, discussed later, from a business in which your services materially helped to produce the income. Aarp tax aide locations   You can also have earned income from property your personal efforts helped create, such as royalties from your books or inventions. Aarp tax aide locations Earned income includes net earnings from selling or otherwise disposing of the property, but it does not include capital gains. Aarp tax aide locations It includes income from licensing the use of property other than goodwill. Aarp tax aide locations   Earned income includes amounts received for services by self-employed members of recognized religious sects opposed to social security benefits who are exempt from self-employment tax. Aarp tax aide locations   If you have more than one business, but only one has a retirement plan, only the earned income from that business is considered for that plan. Aarp tax aide locations Employer. Aarp tax aide locations   An employer is generally any person for whom an individual performs or did perform any service, of whatever nature, as an employee. Aarp tax aide locations A sole proprietor is treated as his or her own employer for retirement plan purposes. Aarp tax aide locations However, a partner is not an employer for retirement plan purposes. Aarp tax aide locations Instead, the partnership is treated as the employer of each partner. Aarp tax aide locations Highly compensated employee. Aarp tax aide locations   A highly compensated employee is an individual who: Owned more than 5% of the interest in your business at any time during the year or the preceding year, regardless of how much compensation that person earned or received, or For the preceding year, received compensation from you of more than $115,000 (if the preceding year is 2012, 2013, or 2014) and, if you so choose, was in the top 20% of employees when ranked by compensation. Aarp tax aide locations Leased employee. Aarp tax aide locations   A leased employee who is not your common-law employee must generally be treated as your employee for retirement plan purposes if he or she does all the following. Aarp tax aide locations Provides services to you under an agreement between you and a leasing organization. Aarp tax aide locations Has performed services for you (or for you and related persons) substantially full time for at least 1 year. Aarp tax aide locations Performs services under your primary direction or control. Aarp tax aide locations Exception. Aarp tax aide locations   A leased employee is not treated as your employee if all the following conditions are met. Aarp tax aide locations Leased employees are not more than 20% of your non-highly compensated work force. Aarp tax aide locations The employee is covered under the leasing organization's qualified pension plan. Aarp tax aide locations The leasing organization's plan is a money purchase pension plan that has all the following provisions. Aarp tax aide locations Immediate participation. Aarp tax aide locations (This requirement does not apply to any individual whose compensation from the leasing organization in each plan year during the 4-year period ending with the plan year is less than $1,000. Aarp tax aide locations ) Full and immediate vesting. Aarp tax aide locations A nonintegrated employer contribution rate of at least 10% of compensation for each participant. Aarp tax aide locations However, if the leased employee is your common-law employee, that employee will be your employee for all purposes, regardless of any pension plan of the leasing organization. Aarp tax aide locations Net earnings from self-employment. Aarp tax aide locations   For SEP and qualified plans, net earnings from self-employment is your gross income from your trade or business (provided your personal services are a material income-producing factor) minus allowable business deductions. Aarp tax aide locations Allowable deductions include contributions to SEP and qualified plans for common-law employees and the deduction allowed for the deductible part of your self-employment tax. Aarp tax aide locations   Net earnings from self-employment does not include items excluded from gross income (or their related deductions) other than foreign earned income and foreign housing cost amounts. Aarp tax aide locations   For the deduction limits, earned income is net earnings for personal services actually rendered to the business. Aarp tax aide locations You take into account the income tax deduction for the deductible part of self-employment tax and the deduction for contributions to the plan made on your behalf when figuring net earnings. Aarp tax aide locations   Net earnings include a partner's distributive share of partnership income or loss (other than separately stated items, such as capital gains and losses). Aarp tax aide locations It does not include income passed through to shareholders of S corporations. Aarp tax aide locations Guaranteed payments to limited partners are net earnings from self-employment if they are paid for services to or for the partnership. Aarp tax aide locations Distributions of other income or loss to limited partners are not net earnings from self-employment. Aarp tax aide locations   For SIMPLE plans, net earnings from self-employment is the amount on line 4 of Short Schedule SE or line 6 of Long Schedule SE (Form 1040), Self-Employment Tax, before subtracting any contributions made to the SIMPLE plan for yourself. Aarp tax aide locations Qualified plan. Aarp tax aide locations   A qualified plan is a retirement plan that offers a tax-favored way to save for retirement. Aarp tax aide locations You can deduct contributions made to the plan for your employees. Aarp tax aide locations Earnings on these contributions are generally tax free until distributed at retirement. Aarp tax aide locations Profit-sharing, money purchase, and defined benefit plans are qualified plans. Aarp tax aide locations A 401(k) plan is also a qualified plan. Aarp tax aide locations Participant. Aarp tax aide locations   A participant is an eligible employee who is covered by your retirement plan. Aarp tax aide locations See the discussions of the different types of plans for the definition of an employee eligible to participate in each type of plan. Aarp tax aide locations Partner. Aarp tax aide locations   A partner is an individual who shares ownership of an unincorporated trade or business with one or more persons. Aarp tax aide locations For retirement plans, a partner is treated as an employee of the partnership. Aarp tax aide locations Self-employed individual. Aarp tax aide locations   An individual in business for himself or herself, and whose business is not incorporated, is self-employed. Aarp tax aide locations Sole proprietors and partners are self-employed. Aarp tax aide locations Self-employment can include part-time work. Aarp tax aide locations   Not everyone who has net earnings from self-employment for social security tax purposes is self-employed for qualified plan purposes. Aarp tax aide locations See Common-law employee and Net earnings from self-employment , earlier. Aarp tax aide locations   In addition, certain fishermen may be considered self-employed for setting up a qualified plan. Aarp tax aide locations See Publication 595, Capital Construction Fund for Commercial Fishermen, for the special rules used to determine whether fishermen are self-employed. Aarp tax aide locations Sole proprietor. Aarp tax aide locations   A sole proprietor is an individual who owns an unincorporated business by himself or herself, including a single member limited liability company that is treated as a disregarded entity for tax purposes. Aarp tax aide locations For retirement plans, a sole proprietor is treated as both an employer and an employee. Aarp tax aide locations Prev  Up  Next   Home   More Online Publications
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The Aarp Tax Aide Locations

Aarp tax aide locations Publication 600 - Main Contents Table of Contents Actual Expenses Optional Sales Tax Tables Instructions for the State and Local General Sales Tax Deduction WorksheetWhat if you lived in more than one state? What if you lived in more than one locality? What if your local general sales tax rate changed during 2006? What if you lived in more than one locality in the same state during 2006? Actual Expenses Generally, you can deduct the actual state and local general sales taxes (including compensating use taxes) you paid in 2006 if the tax rate was the same as the general sales tax rate. Aarp tax aide locations However, sales taxes on food, clothing, medical supplies, and motor vehicles are deductible as a general sales tax even if the tax rate was less than the general sales tax rate. Aarp tax aide locations If you paid sales tax on a motor vehicle at a rate higher than the general sales tax rate, you can deduct only the amount of tax that you would have paid at the general sales tax rate on that vehicle. Aarp tax aide locations Motor vehicles include cars, motorcycles, motor homes, recreational vehicles, sport utility vehicles, trucks, vans, and off-road vehicles. Aarp tax aide locations Also include any state and local general sales taxes paid for a leased motor vehicle. Aarp tax aide locations Do not include sales taxes paid on items used in your trade or business. Aarp tax aide locations To deduct your actual expenses, enter the amount on Schedule A, line 5, and enter “ST” on the dotted line to the left of the line 5 entry space. Aarp tax aide locations You must keep your actual receipts showing general sales taxes paid to use this method. Aarp tax aide locations Refund of general sales taxes. Aarp tax aide locations   If you received a refund of state or local general sales taxes in 2006 for amounts paid in 2006, reduce your actual 2006 state and local general sales taxes by this amount. Aarp tax aide locations If you received a refund of state or local general sales taxes in 2006 for prior year purchases, do not reduce your 2006 state and local general sales taxes by this amount. Aarp tax aide locations But if you deducted your actual state and local general sales taxes in the earlier year and the deduction reduced your tax, you may have to include the refund in income on Form 1040, line 21. Aarp tax aide locations See Recoveries in Pub. Aarp tax aide locations 525 for details. Aarp tax aide locations Optional Sales Tax Tables Instead of using your actual expenses, you can use the tables on pages 5 through 7 to figure your state and local general sales tax deduction. Aarp tax aide locations You may also be able to add the state and local general sales taxes paid on certain specified items. Aarp tax aide locations To figure your state and local general sales tax deduction using the tables, complete the worksheet below. Aarp tax aide locations If your filing status is married filing separately, both you and your spouse elect to deduct sales taxes, and your spouse elects to use the optional sales tax tables, you also must use the tables to figure your state and local general sales tax deduction. Aarp tax aide locations State and Local General Sales Tax Deduction Worksheet (See the instructions that begin on page 3. Aarp tax aide locations ) Before you begin: See the instructions for line 1 on page 3 if: You lived in more than one state during 2006, or You had any nontaxable income in 2006. Aarp tax aide locations   1. Aarp tax aide locations Enter your state general sales taxes from the applicable table on page 5 or 6 (see page 3 of the instructions) 1. Aarp tax aide locations $     Next. Aarp tax aide locations If, for all of 2006, you lived only in Connecticut, the District of Columbia, Hawaii, Indiana, Kentucky, Maine, Maryland, Massachusetts, Michigan, Mississippi, New Jersey, Rhode Island, Virginia, or West Virginia, skip lines 2 through 5, enter -0- on line 6, and go to line 7. Aarp tax aide locations Otherwise, go to line 2       2. Aarp tax aide locations Did you live in Alaska, Arizona, Arkansas (Texarkana only), California (Los Angeles County only), Colorado, Georgia, Illinois, Louisiana, New York State, or North Carolina in 2006?         No. Aarp tax aide locations Enter -0-                   Yes. Aarp tax aide locations Enter your local general sales taxes from the applicable table on page 7 (see page 3 of the instructions)     2. Aarp tax aide locations $       3. Aarp tax aide locations Did your locality impose a local general sales tax in 2006? Residents of California, Nevada, and Texarkana, Arkansas, see page 3 of the instructions             No. Aarp tax aide locations Skip lines 3 through 5, enter -0- on line 6, and go to line 7             Yes. Aarp tax aide locations Enter your local general sales tax rate, but omit the percentage sign. Aarp tax aide locations For example, if your local general sales tax rate was 2. Aarp tax aide locations 5%, enter 2. Aarp tax aide locations 5. Aarp tax aide locations If your local general sales tax rate changed or you lived in more than one locality in the same state during 2006, see page 3 of the instructions. Aarp tax aide locations (If you do not know your local general sales tax rate, contact your local government. Aarp tax aide locations ) 3. Aarp tax aide locations . Aarp tax aide locations       4. Aarp tax aide locations Did you enter -0- on line 2 above?             No. Aarp tax aide locations Skip lines 4 and 5 and go to line 6             Yes. Aarp tax aide locations Enter your state general sales tax rate (shown in the table heading for your state), but omit the percentage sign. Aarp tax aide locations For example, if your state general sales tax rate is 6%, enter 6. Aarp tax aide locations 0 4. Aarp tax aide locations . Aarp tax aide locations       5. Aarp tax aide locations Divide line 3 by line 4. Aarp tax aide locations Enter the result as a decimal (rounded to at least three places) 5. Aarp tax aide locations . Aarp tax aide locations       6. Aarp tax aide locations Did you enter -0- on line 2 above?             No. Aarp tax aide locations Multiply line 2 by line 3   6. Aarp tax aide locations $     Yes. Aarp tax aide locations Multiply line 1 by line 5. Aarp tax aide locations If you lived in more than one locality in the same state during 2006, see page 4 of the instructions           7. Aarp tax aide locations Enter your state and local general sales taxes paid on specified items, if any (see page 4 of the instructions) 7. Aarp tax aide locations $   8. Aarp tax aide locations Deduction for general sales taxes. Aarp tax aide locations Add lines 1, 6, and 7. Aarp tax aide locations Enter the result here and the total from all your state and local general sales tax deduction worksheets, if you completed more than one, on Schedule A, line 5. Aarp tax aide locations Be sure to enter “ST” on the dotted line to the left of the entry space 8. Aarp tax aide locations $     Instructions for the State and Local General Sales Tax Deduction Worksheet Line 1. Aarp tax aide locations    If you lived in the same state for all of 2006, enter the applicable amount, based on your 2006 income and exemptions, from the optional state sales tax table for your state on page 5 or 6. Aarp tax aide locations Read down the “At least-But less than” columns for your state and find the line that includes your 2006 income. Aarp tax aide locations If married filing separately, do not include your spouse's income. Aarp tax aide locations Your 2006 income is the amount shown on your Form 1040, line 38, plus any nontaxable items, such as the following. Aarp tax aide locations Tax-exempt interest. Aarp tax aide locations Veterans' benefits. Aarp tax aide locations Nontaxable combat pay. Aarp tax aide locations Workers' compensation. Aarp tax aide locations Nontaxable part of social security and railroad retirement benefits. Aarp tax aide locations Nontaxable part of IRA, pension, or annuity distributions. Aarp tax aide locations Do not include rollovers. Aarp tax aide locations Public assistance payments. Aarp tax aide locations The exemptions column refers to the number of exemptions claimed on Form 1040, line 6d. Aarp tax aide locations Do not include any additional exemptions you listed on Form 8914 for individuals displaced by Hurricane Katrina. Aarp tax aide locations What if you lived in more than one state?    If you lived in more than one state during 2006, look up the table amount for each state using the above rules. Aarp tax aide locations If there is no table for your state, the table amount is considered to be zero. Aarp tax aide locations Multiply the table amount for each state you lived in by a fraction. Aarp tax aide locations The numerator of the fraction is the number of days you lived in the state during 2006 and the denominator is the total number of days in the year (365). Aarp tax aide locations Enter the total of the prorated table amounts for each state on line 1. Aarp tax aide locations However, if you also lived in a locality during 2006 that imposed a local general sales tax, do not enter the total on line 1. Aarp tax aide locations Instead, complete a separate worksheet for each state you lived in and enter the prorated amount for that state on line 1. Aarp tax aide locations Example. Aarp tax aide locations You lived in State A from January 1 through August 31, 2006 (243 days), and in State B from September 1 through December 31, 2006 (122 days). Aarp tax aide locations The table amount for State A is $500. Aarp tax aide locations The table amount for State B is $400. Aarp tax aide locations You would figure your state general sales tax as follows. Aarp tax aide locations State A: $500 x 243/365 = $333   State B: $400 x 122/365 = 134   Total = $467   If none of the localities in which you lived during 2006 imposed a local general sales tax, enter $467 on line 1 of your worksheet. Aarp tax aide locations Otherwise, complete a separate worksheet for State A and State B. Aarp tax aide locations Enter $333 on line 1 of the State A worksheet and $134 on line 1 of the State B worksheet. Aarp tax aide locations Line 2. Aarp tax aide locations   If you checked the “No” box, enter -0- on line 2, and go to line 3. Aarp tax aide locations If you checked the “Yes” box and lived in the same locality for all of 2006, enter the applicable amount, based on your 2006 income and exemptions, from the optional local sales tax table for your locality on page 7. Aarp tax aide locations Read down the “At least-But less than” columns for your locality and find the line that includes your 2006 income. Aarp tax aide locations See the line 1 instructions on this page to figure your 2006 income. Aarp tax aide locations The exemptions column refers to the number of exemptions claimed on Form 1040, line 6d. Aarp tax aide locations Do not include any additional exemptions you listed on Form 8914 for individuals displaced by Hurricane Katrina. Aarp tax aide locations What if you lived in more than one locality?   If you lived in more than one locality during 2006, look up the table amount for each locality using the above rules. Aarp tax aide locations If there is no table for your locality, the table amount is considered to be zero. Aarp tax aide locations Multiply the table amount for each locality you lived in by a fraction. Aarp tax aide locations The numerator of the fraction is the number of days you lived in the locality during 2006 and the denominator is the total number of days in the year (365). Aarp tax aide locations If you lived in more than one locality in the same state and the local general sales tax rate was the same for each locality, enter the total of the prorated table amounts for each locality in that state on line 2. Aarp tax aide locations Otherwise, complete a separate worksheet for lines 2 through 6 for each locality and enter each prorated table amount on line 2 of the applicable worksheet. Aarp tax aide locations Example. Aarp tax aide locations You lived in Locality 1 from January 1 through August 31, 2006 (243 days), and in Locality 2 from September 1 through December 31, 2006 (122 days). Aarp tax aide locations The table amount for Locality 1 is $100. Aarp tax aide locations The table amount for Locality 2 is $150. Aarp tax aide locations You would figure the amount to enter on line 2 as follows. Aarp tax aide locations Note that this amount may not equal your local sales tax deduction, which is figured on line 6 of the worksheet. Aarp tax aide locations Locality 1: $100 x 243/365 = $67   Locality 2: $150 x 122/365 = 50   Total = $117   Line 3. Aarp tax aide locations   If you lived in California, check the “No” box if your combined state and local general sales tax rate is 7. Aarp tax aide locations 25%. Aarp tax aide locations Otherwise, check the “Yes” box and include on line 3 only the part of the combined rate that is more than 7. Aarp tax aide locations 25%. Aarp tax aide locations   If you lived in Nevada, check the “No” box if your combined state and local general sales tax rate is 6. Aarp tax aide locations 5%. Aarp tax aide locations Otherwise, check the “Yes” box and include on line 3 only the part of the combined rate that is more than 6. Aarp tax aide locations 5%. Aarp tax aide locations   If you lived in Texarkana, Arkansas, check the “Yes” box and enter “4. Aarp tax aide locations 0” on line 3. Aarp tax aide locations Your local general sales tax rate of 4. Aarp tax aide locations 0% includes the additional 1. Aarp tax aide locations 0% Arkansas state sales tax rate for Texarkana and the 1. Aarp tax aide locations 5% sales tax rate for Miller County. Aarp tax aide locations What if your local general sales tax rate changed during 2006?    If you checked the “Yes” box and your local general sales tax rate changed during 2006, figure the rate to enter on line 3 as follows. Aarp tax aide locations Multiply each tax rate for the period it was in effect by a fraction. Aarp tax aide locations The numerator of the fraction is the number of days the rate was in effect during 2006 and the denominator is the total number of days in the year (365). Aarp tax aide locations Enter the total of the prorated tax rates on line 3. Aarp tax aide locations Example. Aarp tax aide locations Locality 1 imposed a 1% local general sales tax from January 1 through September 30, 2006 (273 days). Aarp tax aide locations The rate increased to 1. Aarp tax aide locations 75% for the period from October 1 through December 31, 2006 (92 days). Aarp tax aide locations You would enter “1. Aarp tax aide locations 189” on line 3, figured as follows. Aarp tax aide locations January 1 - September 30: 1. Aarp tax aide locations 00 x 273/365 = 0. Aarp tax aide locations 748   October 1 - December 31: 1. Aarp tax aide locations 75 x 92/365 = 0. Aarp tax aide locations 441   Total = 1. Aarp tax aide locations 189   What if you lived in more than one locality in the same state during 2006?    Complete a separate worksheet for lines 2 through 6 for each locality in your state if you lived in more than one locality in the same state during 2006 and either of the following applies. Aarp tax aide locations Each locality did not have the same local general sales tax rate. Aarp tax aide locations You lived in Texarkana, AR, or Los Angeles County, CA. Aarp tax aide locations   To figure the amount to enter on line 3 of the worksheet for each locality in which you lived (except a locality for which you used the table on page 7 to figure your local general sales tax deduction), multiply the local general sales tax rate by a fraction. Aarp tax aide locations The numerator of the fraction is the number of days you lived in the locality during 2006 and the denominator is the total number of days in the year (365). Aarp tax aide locations Example. Aarp tax aide locations You lived in Locality 1 from January 1 through August 31, 2006 (243 days), and in Locality 2 from September 1 through December 31, 2006 (122 days). Aarp tax aide locations The local general sales tax rate for Locality 1 is 1%. Aarp tax aide locations The rate for Locality 2 is 1. Aarp tax aide locations 75%. Aarp tax aide locations You would enter “0. Aarp tax aide locations 666” on line 3 for the Locality 1 worksheet and “0. Aarp tax aide locations 585” for the Locality 2 worksheet, figured as follows. Aarp tax aide locations Locality 1: 1. Aarp tax aide locations 00 x 243/365 = 0. Aarp tax aide locations 666   Locality 2: 1. Aarp tax aide locations 75 x 122/365 = 0. Aarp tax aide locations 585   Line 6. Aarp tax aide locations   If you lived in more than one locality in the same state during 2006, you should have completed line 1 only on the first worksheet for that state and separate worksheets for lines 2 through 6 for any other locality within that state in which you lived during 2006. Aarp tax aide locations If you checked the “Yes” box on line 6 of any of those worksheets, multiply line 5 of that worksheet by the amount that you entered on line 1 for that state on the first worksheet. Aarp tax aide locations Line 7. Aarp tax aide locations    Enter on line 7 any state and local general sales taxes paid on the following specified items. Aarp tax aide locations If you are completing more than one worksheet, include the total for line 7 on only one of the worksheets. Aarp tax aide locations A motor vehicle (including a car, motorcycle, motor home, recreational vehicle, sport utility vehicle, truck, van, and off-road vehicle). Aarp tax aide locations Also include any state and local general sales taxes paid for a leased motor vehicle. Aarp tax aide locations If the state sales tax rate on these items is higher than the general sales tax rate, only include the amount of tax you would have paid at the general sales tax rate. Aarp tax aide locations An aircraft or boat, if the tax rate was the same as the general sales tax rate. Aarp tax aide locations A home (including a mobile home or prefabricated home) or substantial addition to or major renovation of a home, but only if the tax rate was the same as the general sales tax rate and any of the following applies. Aarp tax aide locations Your state or locality imposes a general sales tax directly on the sale of a home or on the cost of a substantial addition or major renovation. Aarp tax aide locations You purchased the materials to build a home or substantial addition or to perform a major renovation and paid the sales tax directly. Aarp tax aide locations Under your state law, your contractor is considered your agent in the construction of the home or substantial addition or the performance of a major renovation. Aarp tax aide locations The contract must state that the contractor is authorized to act in your name and must follow your directions on construction decisions. Aarp tax aide locations In this case, you will be considered to have purchased any items subject to a sales tax and to have paid the sales tax directly. Aarp tax aide locations   Do not include sales taxes paid on items used in your trade or business. Aarp tax aide locations If you received a refund of state or local general sales taxes in 2006, see Refund of general sales taxes on page 1. Aarp tax aide locations Prev  Up  Next   Home   More Online Publications