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. |
 |
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 Definitions
Articles Of Interest
-
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. -
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. -
Cut Taxes By Reporting Property Damage
Know the options you have for your insured property if and when a disaster strikes. -
10 Reasons Why Moving Might Not Make You Richer
Find out why moving to a less expensive city may not reduce your expenses. -
Has Income Tax Become A Class Tax On The Poor?
With more than 33% of American families falling close to the poverty line despite their adult members holding full-time employment, a rising number of citizens are being forced to pay a rate ... -
Possible Effects Of The Online Retail Tax
The U.S. Senate has passed a bill that will impose a sales tax on online retailers. Discover how the Marketplace Fairness Act could affect your bottom line. -
How To Get The Most Out Of Hiring An Accountant
When you hire an accountant, getting good tax advice going forward is as valuable as – or perhaps even more valuable than - getting the previous year’s taxes filed correctly. Learn what you need ... -
How The 2014 Obama Budget Could Affect Your Finances
Depending on which estimate you believe, Obama's proposed budget would raise the tax bill of a household with a yearly income of $50,000 to $75,000 between $63 and $100 per year. However, that’s ... -
Austerity: When The Government Tightens Its Belt
When a government tightens its belt in tough economic times the entire nation feels the squeeze. -
Inaccurate Tax Return, Now What?
If the IRS finds errors, it will cost you. Find out how to fix them, and how to prevent them in the first place.
Free Annual Reports
