01.26.05

2004 State Sales Tax Deduction Table for Washington State

In December the Internal Revenue Service released a table, allowing Washington state taxpayers to determine the size of their tax deduction from the state sales tax deduction passed by Congress in October. The table is available online at http://www.irs.gov/pub/irs-pdf/p600.pdf and is also pasted below. In addition to the table (included below), taxpayers will be able to deduct sales tax paid on certain items specified by the IRS, including motor vehicles, motor vehicle lease payments, boats, and home building materials. Sales tax paid on these big ticket items can be deducted in addition the amounts specified in the table.

The table allows families to determine the amount of their deduction on Form 1040 Schedule A line 5. For example, a family of four earning $40,000 annually would be able to deduct $808.

2004 State Sales Tax Deduction Table for Washington State

(itemizing taxpayers will be able to deduct the relevant amount from line 5 of Form 1040 Schedule A) Income Exemptions At least But less than 1 2 3 4 5 Over 5 $0 $20,000 389 439 471 496 516 543 20,000 30,000 500 564 605 636 662 696 30,000 40,000 574 647 694 729 758 797 40,000 50,000 637 717 769 808 840 883 50,000 60,000 694 780 836 879 913 960 60,000 70,000 744 837 896 942 978 1029 70,000 80,000 791 890 953 1001 1040 1093 80,000 90,000 834 937 1004 1054 1095 1151 90,000 100,000 875 983 1052 1105 1148 1206 100,000 120,000 929 1043 1116 1172 1217 1279 120,000 140,000 1000 1123 1201 1261 1309 1376 140,000 160,000 1064 1193 1277 1340 1391 1462 160,000 180,000 1124 1261 1349 1415 1469 1543 180,000 200,000 1181 1324 1416 1485 1542 1619 200,000 or more 1431 1602 1712 1795 1862 1955

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