IRS Publication 600

AAA

DEFINITION of 'IRS Publication 600'

A document published by the Internal Revenue Service (IRS) that provides information on deducting state and local sales taxes from federal income tax. IRS Publication 600 was created as an addendum to Schedule A in order to address the Tax Relief and Health Care Act of 2006, which was enacted after instructions for Schedule A were printed. The Tax Relief and Health Care Act of 2006 allowed taxpayers to elect to list state and local sales taxes instead of state and local income taxes, but not both, as itemized deductions.

INVESTOPEDIA EXPLAINS 'IRS Publication 600'

IRS Publication 600 only addresses the 2006 tax year. Taxpayers were allowed to deduct sales tax expenses if the state or local tax rate was the same as the general sales tax rate. The publication provides a worksheet that can be used to determine the overall deduction for general sales taxes, as well as a table for state and local sales tax rates.

RELATED TERMS
  1. Sales Tax

    A tax imposed by the government at the point of sale on retail ...
  2. Itemized Deduction

    A deduction from a taxpayer's taxable adjusted gross income that ...
  3. Internal Revenue Service - IRS

    A United States government agency that is responsible for the ...
  4. Schedule A

    A U.S. income tax form used by taxpayers to report itemized deductions, ...
  5. 1040 Form

    The standard Internal Revenue Service (IRS) form that individuals ...
  6. Separation Of Powers

    An organizational structure in which responsibilities, authorities, ...
Related Articles
  1. Taxes

    Cut Taxes By Reporting Property Damage

    Know the options you have for your insured property if and when a disaster strikes.
  2. Taxes

    Don't Put Off Your Year-End Tax Plan

    From sales tax deductions to credit reports, check out what items should be on your financial checklist.
  3. Taxes

    The History Of Taxes In The U.S.

    The number of taxes that we now consider a given did not always exist. Find out how they arose.
  4. Insurance

    10 Reasons Why Moving Might Not Make You Richer

    Find out why moving to a less expensive city may not reduce your expenses.
  5. Savings

    How Microeconomics Affects Everyday Life

    Microeconomics is the study of how individuals and businesses make decisions to maximize satisfaction. Microeconomic principles can describe many everyday experiences. We use renting a New York ...
  6. Credit & Loans

    6 Ways To Build Credit Without A Credit Card

    It's definitely possible – if a bit more complicated – to build a credit history without traditional credit cards. Just follow these steps.
  7. Taxes

    The First Thing You Should Do With Your Tax Refund

    Nobody likes to pay taxes, but everyone loves to get a tax refund. When the check arrives in the mail, it's hard to resist spending it on some indulgence.
  8. Taxes

    How Does An IRS Audit Work?

    It doesn't automatically mean an IRS agent will be ringing your doorbell. Here are the different types of IRS audits and how to handle them.
  9. Taxes

    What is the Effective Tax Rate?

    The effective tax rate is the average rate at which an individual or corporation is taxed per year.
  10. Taxes

    Switzerland's Declining Tax Haven Appeal

    Switzerland's tax haven allure is being threatened by efforts by the US and other governments to make Swiss banks give up their much-vaunted secrecy.

You May Also Like

Hot Definitions
  1. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
  2. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
  3. Market Value

    The price an asset would fetch in the marketplace. Market value is also commonly used to refer to the market capitalization ...
  4. Preference Shares

    Company stock with dividends that are paid to shareholders before common stock dividends are paid out. In the event of a ...
  5. Accrued Interest

    1. A term used to describe an accrual accounting method when interest that is either payable or receivable has been recognized, ...
  6. Absorption Costing

    A managerial accounting cost method of expensing all costs associated with manufacturing a particular product. Absorption ...
Trading Center