Picture this: You live in a state with no income tax. On your federal income tax return, you claim itemized deductions for mortgage interest, property taxes, and medical expenses, but you do not claim an itemized deduction for sales taxes.

As part of the American Jobs Creation Act of 2004, lawmakers put the sales tax deduction back in place to benefit taxpayers who live in states without an income tax. Of course, lawmakers did not have the money to make the ... Log in to view full article.