elect to deduct state and local general sales taxes instead of
state and local income taxes, but you cannot deduct both. If you elect to
deduct state and local general sales taxes, you can use either your actual
expenses or the optional sales tax tables. The deduction for state and local
general sales taxes expired December 31, 2013. You may claim it on your tax
year 2013 tax return if you qualify. Under current law, the deduction is not
available for tax years after 2013. You can also deduct any
estimated taxes you paid to state or local governments during the year, andany prior year's state or local
income tax you paid during the year.
Generally, you can take either a deduction or a tax
credit for foreign income taxes imposed on you by a foreign country or a
United States possession. As an employee, you can deduct mandatory
contributions to state benefit funds that provide protection against loss of
wages.
Deductible real estate taxes are generally any
state, local, or foreign taxes on real property levied for the general
public welfare. They must be charged uniformly against all real property in
the jurisdiction at a like rate. Many states and counties also impose local
benefit taxes for improvements to property, such as assessments for streets,
sidewalks, and sewer lines. These taxes cannot be deducted. However, you can
increase the cost basis of your property by the amount of the assessment.
Local benefits taxes are deductible if they are for maintenance or repair,
or interest charges related to those benefits.If a portion of your monthly
mortgage payment goes into an escrow account, and periodically the lender
pays your real estate taxes out of the account to the local government, do
not deduct the amount paid into the escrow account. Only deduct the amount
actually paid out of the escrow account during the year to the taxing
authority.
Deductible personal property taxes are those based
only on the value of personal property such as a boat or car. The tax must
be charged to you on a yearly basis, even if it is collected more than once
a year or less than once a year.Some taxes and fees you cannot deduct on
Schedule A include federal income taxes, social security taxes, transfer
taxes (or stamp taxes) on the sale of property, homeowner's association
fees, estate and inheritance taxes, and service charges for water, sewer, or
trash collection. You may be subject to a limit on some of your itemized
deductions including non-business taxes. In addition to these limits,
beginning in 2013, your total itemized deductions may be reduced based on
your adjusted gross income.
There are many types of deductible
non-business taxes such as state, local and foreign income
taxes, local personal property taxes and general sales taxes. However, the deduction for state and local general sales
taxes is no longer available for tax years after 2013. So to recap, the
deduction for state and local general sales taxes expired
December 31, 2013. So
before this, you can elect to deduct state and local general sales
taxes instead of state and local income taxes.If
you elect to deduct state and local general sales taxes, you can use either
your actual expenses or the optional sales tax tables.
Deductible real estate taxes are generally any
state, local, or foreign taxes on real property levied for the
general public welfare. Additionally, the deductible real estate
taxes must be charged uniformly against all real property in the
jurisdiction at a like rate. Furthermore, deductible personal property taxes are
