State Fuel Tax included in new Sales Tax Deduction?

Discussion in 'Tax' started by hawks5999@gmail.com, Jan 4, 2005.

  1. Guest

    Is the amount of state taxes paid on gasoline deductible in
    light of the new laws relating to deducting state/local
    sales tax when filing federal income tax? I live in
    Washington and pay 28 cents/gallon... and much to my wife's
    chagrin I have every receipt from every gas purchase from
    the last year showing total gallons. Heck, I have 99% of all
    receipts for every dollar we've spent for the last 5 years.
    Looks like that habbit may finally pay off!

    Thanks.
    hawks5999

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    , Jan 4, 2005
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  2. Herb Smith Guest

    wrote:

    > Is the amount of state taxes paid on gasoline deductible in
    > light of the new laws relating to deducting state/local
    > sales tax when filing federal income tax? I live in
    > Washington and pay 28 cents/gallon... and much to my wife's
    > chagrin I have every receipt from every gas purchase from
    > the last year showing total gallons. Heck, I have 99% of all
    > receipts for every dollar we've spent for the last 5 years.
    > Looks like that habbit may finally pay off!


    You pay 28 cents/gallon regardless of the base price/gallon
    of the gas, therefore the tax does not meet the definition
    of a sales/use tax. No deduction. Besides the amount of
    tax is not separately stated on your receipt.

    WA does not charge sales tax on gasoline purchases, only an
    excise tax. The excise tax is similar to the liquor tax paid
    on booze (although you pay sales tax in addition on that).

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    Herb Smith, Jan 7, 2005
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  3. MTW Guest

    wrote:

    > Is the amount of state taxes paid on gasoline deductible in
    > light of the new laws relating to deducting state/local
    > sales tax when filing federal income tax? I live in
    > Washington and pay 28 cents/gallon...


    Probably not deductible for a couple of reasons:

    First, only "general" sales taxes (applying to a broad range
    of goods) are deductible. The gas tax in WA is not "general"
    in nature. Rather, it is a specific tax applicable only to
    gasoline.

    Second, the tax is not "separately stated." Rather, it is
    simply bundled into the price per gallon at the pump.

    The same limitations would apply to WA state liquor taxes.
    You do, in fact, pay retail sales tax on beer and wine in
    some cases. But, other than that, the substantial state
    liquor taxes are simply built into the price.

    MTW

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    MTW, Jan 7, 2005
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  4. wrote:

    > Is the amount of state taxes paid on gasoline deductible in
    > light of the new laws relating to deducting state/local
    > sales tax when filing federal income tax? I live in
    > Washington and pay 28 cents/gallon... and much to my wife's
    > chagrin I have every receipt from every gas purchase from
    > the last year showing total gallons. Heck, I have 99% of all
    > receipts for every dollar we've spent for the last 5 years.
    > Looks like that habbit may finally pay off!


    You are hereby applauded on your meticulous record keeping.
    No, not facetious, I really mean that.

    HOW some ever; the new deduction is for state SALES
    taxes, and NOT gasoline taxes. Also, most states, at least
    the ones down South I'm familiar with, do not add sales tax
    on top of gas prices. If any do, I'm sure someone up nawth
    or out west will let us know.

    ChEAr$,
    Harlan Lunsford, EA n LA
    Thu, 6 Jan 2005

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    Harlan Lunsford, Jan 7, 2005
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  5. hawks5999 Guest

    Thanks all for the input. I figured it was just wishful
    thinking.... The just knocks ~$300 off my deduction for the
    year. I have to say that the IRS Pub. 600 tables are really
    quite low, at least in light of my actuals vs. their table.

    Thanks again.

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    hawks5999, Jan 10, 2005
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  6. Herb Smith Guest

    hawks5999 wrote:

    > Thanks all for the input. I figured it was just wishful
    > thinking.... The just knocks ~$300 off my deduction for the
    > year. I have to say that the IRS Pub. 600 tables are really
    > quite low, at least in light of my actuals vs. their table.


    You DO have the option of using actual receipts versus the
    adjusted Pub 600 amount, so why not do that?

    The table amounts only reflect the "General Sales Tax Rate"
    for your state, and should be adjusted upward for additional
    County and City sales tax amounts. That might bring them
    closer to your actual receipts.

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    Herb Smith, Jan 10, 2005
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  7. MTW Guest

    hawks5999 wrote:

    > I have to say that the IRS Pub. 600 tables are really
    > quite low, at least in light of my actuals vs. their table.


    Did you add local taxes to the table amounts? Local rates,
    including RTA, etc., can be over 2% in the Puget Sound area.
    Here's a link that might help:

    http://dor.wa.gov/content/GIS/salestaxratelookup.aspx

    Nevertheless, I share your conclusion that the table rates
    are on the low side.

    MTW

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    MTW, Jan 10, 2005
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  8. Phil Marti Guest

    writes:

    > Is the amount of state taxes paid on gasoline deductible in
    > light of the new laws relating to deducting state/local
    > sales tax when filing federal income tax?


    No. That's not sales tax.

    > I live in Washington and pay 28 cents/gallon...


    It's the price you pay for living in a blue state.

    Phil Marti
    Clarksburg, MD

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    Phil Marti, Jan 18, 2005
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  9. MTW Guest

    Phil Marti wrote:

    > It's the price you pay for living in a blue state.


    More realistically, it is a partial trade-off for the lack
    of a state income tax.

    MTW

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    MTW, Jan 18, 2005
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