Itemized Deductions: Deducting Taxes You Paid

Certain taxes you have already paid are allowable as itemized deductions. To be deductible, these taxes must have been imposed on you personally, and you must have paid them during the year. The following taxes you paid during the year are deductible as itemized deductions on Schedule A:

• State and local income taxes.
• Real estate taxes (deductible in the year you paid them).
• Personal property taxes charged on the value of personal property.
• Foreign income taxes paid.

Not all taxes paid, however, are deductible. Note carefully, then, that the following taxes are never deductible:

• Federal income taxes.
• Employee contributions to private or voluntary disability plans.
• Trash or pickup fees.
• Federal excise taxes.
• Homeowner’s association fees.
• Rent increase due to higher real estate taxes.
• Social Security and other employment taxes for household workers.
• Taxes for local benefits (e.g. property improvements).
• Transfer taxes.
• Gift taxes.
• Estate or inheritance taxes.
• Fines and penalties.

The primary objective of this article is to empower taxpayers to learn to do their own taxes. For detailed information on your deductible taxes, grab yourself a copy of “Doing Your Own Taxes is as Easy as 1, 2, 3,” ($6.98) on

Milton G Boothe is an IRS Enrolled Agent with over twenty years of tax and financial accounting experience, including several years at PricewaterhouseCoopers. He is also a British certified Chartered Accountant. He is currently employed in private tax practices where he helps people resolve their tax problems, minimize their taxes, and routinely represents the interests of taxpayers before the Internal Revenue Service. As an Enrolled Agent (EA) Boothe is a federally-authorized tax practitioner who has technical expertise in the field of taxation and who is empowered by the U.S. Department of the Treasury to represent taxpayers before all administrative levels of the IRS for audits, collections, and appeals.
Milton G Boothe is also the author of several tax publications, wherein he encourages people to empower themselves by learning to do their own taxes.

Subscribe to TaxConnections Blog

Enter your email address to subscribe to this blog and receive notifications of new posts by email.