IRS Publication 600
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. |
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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. |
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