Taxes You Paid
In order for a tax to be deductible by you, the tax must be imposed on you and must be paid by
you during the tax year. You report deductible taxes on line 5 through 9 of Schedule
What are deductible taxes?
Deductible taxes include:
State and local income taxes
These taxes include:
Box 17 of the tax form W-2 states the amount of state tax withheld. Your local tax withheld is
reported in box 19 of Form W-2. Also deductible are mandatory contributions you made to the:
California, NJ or NY Nonoccupational Disability Benefit Fund,
RI Temporary Disability Benefit Fund,
Washington State Supplemental Workmen's Compensation Fund, or
West Virginia Unemployment Compensation Fund.
General sales taxes
See Sales Taxes Deduction
Real Estate taxes
These are taxes on real estate property, such as your home or other land that you own that was
not used for business. The taxes must be based on the assessed value of the property. Generally, real estate taxes
are deductible when paid. With an escrow account, you can deduct the real estate tax in the year the lending
institution pays it.
Personal property taxes
Taxes that state and local governments charge on the value of personal property are tax
deductible. An example is personal property taxes based on the value of your car or boat. In some states, a portion
of the cost of personal vehicle registration may be deductible if part of the fee is based on the value of your
Foreign income taxes
Generally you can take either a deduction or a credit for income taxes imposed on you by a
foreign country or a US possession.