1040-US: Adjustments to states and localities that tax items, such as food, clothing, and medical supplies, at a lower sales tax rate

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Question

Do I need to adjust for the fact that some states and localities tax items, such as food, clothing, and medical supplies, at lower sales tax rates?

Answer

Sales taxes on food, clothing, and medical supplies are already figured into the table amounts. As a result, the calculation of the local table value includes the state general sales tax rate. By multiplying the local sales tax ratio by the table amount, the lower rates are taken into consideration.

Related topic: Sales tax FAQs (1040)

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