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New Law Extends Sales Tax Deduction
Since 2004, uncle sam has allowed taxpayers to deduct state and local sales tax in lieu of state and local income taxes if it provided a better benefit. This ittemized deduction was scheduled to expire at the end of 2007.
The new emergency economic stabilization act has extended the deduction for two years through 2009. To support their deductions, tax payers may choose to save receipts or use the sales tax tables provided by the irs. your tax preparer can help you decide which method provides you with the largest itemized deduction.