12 Legal Ways to Reduce Your Tax Burden

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Itemize state sales tax

You can pay less in taxes by itemizing state sales tax. So, if you’re a taxpayer and decide to itemize state sales tax or state income tax on your Schedule A form, you’ll most likely pay less. However, it’s a pretty good idea to opt for the state sales tax break when you actually live in a state that doesn’t impose income taxes.

This tax break is perfect for those who had major purchases recently, such as a boat or a car. If your purchases weren’t that big, check the table provided on the IRS website to see what you can claim. And remember that the federal tax deduction for both state and local taxes is capped at $10,000.

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