JK Harris Reminds Taxpayers to Consider Options for 2004

For the 2004 and 2005 tax years, taxpayers who itemized deductions will have the option of using the deduction for state and local sales tax instead of state and local income tax

North Charleston, SC (PRWEB) December 22, 2004 -- JK Harris, the nations largest and most successful tax resolution firm, wants to remind taxpayers who itemize deductions they will have the option of using the deduction for state and local sales tax instead of state and local income tax for the 2004 and 2005 tax years.

The American Jobs Creation Act of 2004 authorized the sales tax deduction as an option for those who itemize deductions, letting them choose between deductions for state and local income or sales taxes. Taxpayers will indicate by a checkbox on line 5 of Schedule A" which type of tax theyre claiming. The law provides this choice for Tax Years 2004 and 2005 only.

The Optional State Sales Tax Tables, which taxpayers may use for their 2004 returns, has been made available on the Internal Revenue Web site. The tables give taxpayers a sales tax deduction amount as an alternative to saving their receipts throughout the year and tabulating the amount actually paid.

Taxpayers use their income level and number of exemptions to find the sales tax amount for their state. The table instructions explain how to add an amount for local sales taxes if appropriate. Taxpayers also may add to the table amount any sales taxes paid on:
(1) A motor vehicle, but only up to the amount of tax paid at the generals sales tax rate; and
(2) An aircraft, boat, home (including mobile or prefabricated), or home building materials, if the tax rate is the same as the general sales tax rate.

While this deduction will mainly benefit taxpayers with a state or local sales tax but no income tax -- in Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming -- it may give a larger deduction to any taxpayer that paid more in sales taxes than income taxes. For example, a person may have bought a new car, boosting the sales tax total, or claimed tax credits, lowering the state income tax paid.

Taxpayers may download Publication 600 from www.irs.gov. A printed version will be available for mailing in a few weeks by calling toll free 1-800-829-3676.

JK Harris prepares thousands of tax returns yearly for individuals and small businesses.

JK Harris and Company (www.jkharris.com) is the nations largest tax resolution company with over 470 satellite offices in 45 state. JK Harris & Company has serviced over 120,000 clients since its founding in 1997 by John Harris. JK Harris also provides services for consumer and commercial debt, student loan debt, investment fraud, financial planning, mortgage services, tax return preparation, and for individuals who require support for an IRS audit.

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