IRS unveils state sales tax deduction calculator

A new tool makes it easier to deduct state and local sales taxes when filling out federal income tax returns.

The online state sales tax calculator can be used instead of a paper worksheet. When users enter their zip code and some information from their 1040, the tool determines the applicable local sales tax rates and calculates the proper deduction.

The law giving the option to deduct sales taxes in place of state and local income tax was renewed in late December. Because it was reinstated so late, the Internal Revenue Service will not begin processing claims that include that deduction until February 3.

http://www.irs.gov/individuals/article/0,,id=152421,00.html