There are four types of non-business taxes the IRS will allow you to deduct if you are itemizing your deductions. These include:
- State, local, and foreign income taxes,
- Real estate taxes,
- Personal property taxes (Ad Valorem tax), and
- State and local sales taxes
To be deductible, the tax must be imposed on you and must have been paid during your tax year. Taxes may be claimed only as an itemized deduction on Form 1040 Schedule A.
What taxes CANNOT be deducted on a Schedule A?
- Federal income taxes
- Social Security taxes, Medicare
- Stamp taxes or transfer taxes on the sale of property
- Homeowners association fees
- Estate and inheritance taxes
- Service charges for water, sewer, or trash collection.
Is state income tax deductible?
No, you cannot deduct state income taxes on a federal tax return. However, if you itemize on your federal return you may deduct certain state or local taxes paid during the year. To learn more, please see our article on the subject, here.
How do I enter my qualifying taxes for a deduction?
If you did pay any qualifying, deductible taxes during the tax year, you can enter these within your account under:
- Federal Section
- Deductions
- Select my forms
- Itemized Deductions
- Taxes You Paid
For more information, please see IRS Tax Topic 503