Sam Johnson launches PSA campaign to inform Texans of state sales tax deduction when filing 2006 income returns

IRS printed tax forms before the Congress renewed the benefit

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Washington, February 6, 2007 | McCall Avery ((202) 225-4201) | comments
To better serve his constituents, today U.S. Congressman Sam Johnson (3rd Dist.-Texas) launched a public service announcement (PSA) radio campaign to inform Texans of the state sales tax deduction when filing 2006 federal income tax returns. The Internal Revenue Service (IRS) had to go to print with all federal income tax forms before the U.S. Congress renewed the state sales tax deduction.
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To better serve his constituents, today U.S. Congressman Sam Johnson (3rd Dist.-Texas) launched a public service announcement (PSA) radio campaign to inform Texans of the state sales tax deduction when filing 2006 federal income tax returns.  The Internal Revenue Service (IRS) had to go to print with all federal income tax forms before the U.S. Congress renewed the state sales tax deduction.  

Johnson distributed the short radio PSA instructing Texans how to take advantage of the state sales tax deduction with hopes that every Texan would know to use this important tax benefit.  Presently, six states rely on state sales tax, not a state income tax, to collect revenue.

“Texans need to know that they can deduct their state sales tax again when they file their 2006 federal income tax returns,” said Johnson, the highest-ranking Republican on the tax-writing Ways and Means Committee.  

Since 1986, only state income tax could be deducted on federal income tax returns.  However, Johnson championed the state sales tax deduction on the Ways and Means Committee, and worked tirelessly to renew the once-popular state sales tax deduction.  “This is about fairness.  We had to level the playing field for all tax payers and give those who reside in states that have a state sales tax instead of a state income tax the exact same treatment.”  

While many taxpayers file electronically – making it easy to deduct state sales tax instead of state income tax – those who do file using paper forms may want to have this important information.

Constituents may listen to the Congressman’s PSA by visiting the Congressman’s website at www.SamJohnson.house.gov.  The text of the PSA follows:

Congressman Sam Johnson’s state sales tax deduction radio PSA
TRT :58

“Hi.  I’m Congressman Sam Johnson.

“Did you know that Texans are allowed to deduct state sales taxes since we don’t have a state income tax? The forms went to print at the I.R.S. before the Congress renewed this tax benefit.  As a result, your form does not specifically mention the state sales tax deduction.

“Instead, on Schedule A, where you claim itemized deductions, you should enter “ST” (for sales tax) on the dotted line to the left of line 5 which is labeled state and local income taxes.  Then claim the amount of your sales tax deduction.

“Be sure to talk to your personal tax planner and make sure that this is the best option for you. To learn more about the state sales tax deduction and how you can take advantage of it, visit www.irs.gov...again that’s www.irs.gov.

“Thank you.”

Click here to visit the IRS website


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