Deductions for Taxes

Even taxes can be itemized and claimed tax deductions for. There are, however, limits on deductions for taxes. Below is information on common deductions on taxes. There are many types of taxes that qualify for itemized deductions for taxes. There are more deductions for taxes that are not covered in this section.

What can I take for deductions on taxes?

Income taxes

Income taxes that can be deducted include:

• state and local income taxes
• foreign income taxes

General sales taxes

Taxpayers can choose to deduct general state and local sales taxes instead of state and local income taxes. In calculating general sales taxes, taxpayers can either use the actual expenses or the optional sales tax tables. The general sales tax tables are based on:

• the state where the taxpayer lives,
• his or her income
• the number of tax exemptions claimed on tax return

Real estate taxes

Real estate taxes are tax deductible. Deductible real estate taxes are any state, local or foreign taxes on real estate property levied for the general public welfare. Deductible real estate taxes usually do not include the taxes charged for local benefits and improvements that increase the value of the property.

Personal property taxes

Personal property taxes are tax deductible if it is a state or local tax that is:

• charged on personal property
• based only on the value of the personal property
• charged on a yearly basis even if it is collected once a year

Business taxes

Taxpayers can deduct certain taxes if they are ordinary and necessary business expenses. We discuss business expenses tax deductions in another section.