 We'll get into that more in that in a second. The sales tax then gets a little bit more complex because then they had to say, well, look, that's not fair to states that choose to have a sales tax. You're imposing a tax system on the states who are supposed to be sovereign by giving preferential treatment to the people that have an income tax system and not a sales tax system. So then they had, instead of getting rid of deducting the state taxes altogether, they included the sales tax, which is a lot more complex because a sales tax means that you're basically calculating the tax on everything that you buy, right? So in order to not have to track everything that you buy to calculate the sales tax, there's these general tax worksheets for like the average tax. And if I go in here, you got the state and local taxes and there's some worksheets helping us to calculate the tax. So here's the state and local tax, our worksheet that's being used to calculate it. I won't go into it in depth, but that's the general idea. So then the question is, well, do I want to use the easy worksheet to calculate the sales tax or do I want to do my actual sales tax that I paid? And if you're in a situation where you had paid for large items, such as a car or a boat or something like that, it's quite likely your sales tax is higher than the average on the table. And it might be beneficial to do the actual sales tax in that case. And then we looked at all the rules and prior presentations on the tax rate. You have to use the general rate and whatnot and so on. So I won't go into a lot more detail, but that's the general idea. Now you also could have issues if you lived in one state for part of the year and another state in the other part of the year and there was a different sales tax for both those different states and you're trying to use the sales tax table and you lived part of the year in each state, then you'd have to use a ratio analysis to kind of allocate using the proper two tables and so on and so on. But this is being calculated by the table. It's the bottom line. If I then jump to the sales tax and let's imagine that it was a sales tax system here, even though I'm in California personally, so I usually would do the income tax even though we have a sales tax, usually we would do an income tax but because it would be higher for any case. State and local sales tax is paid. So if I go here and I put an actual amount of state and local sales tax is paid, which we would have to track if we're doing the actual amount and let's say it was whatever, 3,000 and then I pull it back on over. So now it's being calculated at the 3,000 for the amount that I populated instead of being reliant just on the tables to do the calculation. Okay, and then that would add up, of course, and so on and so forth. So then let's say that I had a state income tax system, like California has an income tax which is often higher than the sales tax. So that would often be on your W-2. So when you enter the W-2, for example, for many people, you're gonna have the withholdings. So you might have the state tax withholdings that are on the federal tax return. So when I enter the state tax withholdings, let's say they were 2,500, let's say, then if I go back on over, now that's gonna be populated in my taxes here. So I've got the state and local taxes at the 2,500. So generally, when you're doing a tax return that has state tax preparation within it, then usually when you enter the W-2 withholdings, you're basically thinking of the withholdings on the state taxes in a similar fashion as being applied to the state return, not the federal return. So the thing that's usually in your mind is just like when you paid the federal income tax, which is the same like on the W-2 here, 15,000, you would think, well, yeah, on the 1040, that 15,000 is gonna be on page two of the Form 1040 as the amount that we paid. So I'm gonna calculate the tax minus the amount that we paid. Same thing on the California return, or any return that's an income tax system. I'm putting the withholdings in there so I can calculate the tax minus the amount that we paid in the withholdings. But then we have the added complexity of the amount that you paid with the withholdings for state taxes could be deductible on the federal tax side of things if you're doing an itemized deduction. So you don't get the benefit of that when you're doing the standard deduction, which is kind of annoying because again, it kind of benefits higher income individuals, which is a little funny, but it gets capped at the 10,000. So there it is at the 4,000 that's being pulled in. So that's the amount that we paid. Now let's play with that a little bit. If I pull that full 4,000 up to very high income levels that have a high tax, and I pulled it up to like 12,000, then it's gonna be, it's gonna be capped. Well, the whole thing is gonna be capped. I got worried that the whole thing is gonna be capped at the 10,000 now. And that's that controversial law that came in to play a few years ago where people were saying, hey, look, you guys are really abusing this state tax thing because it helps out high income individuals, low income individuals don't get to deduct any of the taxes because they're not itemizing. Now you're deducting the state taxes and you get this massive deduction for high income individuals, plus it's subsidizing states that have high tax rates and so on and so forth. So they capped it at 10,000. So that was a very kind of controversial thing. So now you have a situation where the state taxes are quite beneficial and often push people or help push people over to the point where they're taking the itemized deduction versus the standard deduction, but you've got this cap. So then that's not that high if you lived in a high cost of living state that you could be paying over 10,000 when you include property taxes on the state and local tax. So that is a significant cap, which was controversial and interesting that they put that in. Let's put that back to 4,000 and also just realize that if you got a refund from last year that is included in the current year, then that means that you could have got a deduction. This is where the deduction is at that we talked about on the income side of things. In other words, in a prior presentation, we thought, do I have to include a state tax refund in the income line over here because sometimes they give you a 1099 for it. That would be on the schedule one. And we said they got the taxable refund. Well, and we said the only reason that you would have to include the refund in income is if you got a benefit from it last year. So meaning if they had a schedule A like this in 2021 and they were able to deduct the 4,000 in this case of taxes, they got a benefit from that deduction.