Federal bill includes sales-tax break for nearly 1 million in Washington state.

Byline: Alex Fryer

Oct. 12--Nearly a million Washington taxpayers can expect a roughly $500 tax break next year thanks to a provision tucked into a massive corporate-tax bill approved by Congress.

Residents will be able to deduct Washington sales taxes on their federal tax return for the first time in nearly 20 years under the legislation, which passed the Senate yesterday and is expected to be signed by President Bush.

The change will benefit an estimated 940,000 people who itemize deductions -- about 22 percent of the state's federal tax filers. It will apply to the 2004 and 2005 tax years.

The change won't help people who take the standard deduction; they tend to be lower-income taxpayers and …