- quote -

There is no state income tax in the great state of Texas.
We just soak everyone with sky-high property taxes and sales
taxes.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

"Ian Pilcher" <i.pilcher[at]comcast.net> wrote:
- quote -

You can look up the allowable tax on the tax table provided by
the IRS, multiply it by 1.32 which will inflate it from 6.25%
to 8.25% [8.25/6.25= 1.32]

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

Thanks! I will have to locate the tables in the Form 1040
instructions. I was wondering where they were kept!

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

You use the full amount that your local charges you for
sales. In this case the figure is 8.25%. You will not be
able to deduct the amount of state and local tax withheld
from your pay checks. You may have one or the other, not
both. You should see which one is more benefical for the
taxpayer.

Missy Doyle

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

Ian Pilcher wrote:
- quote -

Pub 600 was good only for 2004. The 2005 tables are in the
instructions for Form 1040. The tables have really changed
(much lower for FL) for 2005. Yes you would add all locals
to the rate shown for Texas.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

You use the whole 8.25% and don't forget to add any untaxed
income to the $30,000 (it won't apply to your son, but the
untaxed part of Social Security is a good example).

Nan, EA in LA

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

Patrick wrote:

- quote -

I'm pretty sure that you use the full 8.25%. You're basically
just adjusting the amount from Pub. 600, which is based on the
6.25% state tax rate, to account for the "full" rate that
applies in Garland.

(I live in Irving, which also has an 8.25% local rate, and
that's what I did.)

HTH

--
================================================== ======================
Ian Pilcher i.pilcher[at]comcast.net
================================================== ======================

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

Greetings,

I am working on my son's (draft) tax return for 2005. He is
single, makes $30,000 a year total income. He itemizes his
deductions due to his mortgage interest and property taxes
exceeding the standard deduction.

I am not certain as to how to apply the State and Local Tax
Deduction -we are using the Standard Sales Tax Deduction.

The City of Garland, TX, where my son lives, has the
following Sales Taxes:

"The City of Garland receives 1% of the 8.25% sales tax
levied on goods and services within the city. Another 1%
goes to DART (Dallas Area Rapid Transit) and the remaining
6.25% to the State."

We are using the 6.25% for the State Tax.

For the Local Sales Tax, due we use 1% or due we add int the
DART tax and use 2%?

Will we be able to, somehow, use the full 8.25% sales tax
rate or only 7.25%?

As always, THANKS!

Pat

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >