State & Local Taxes

You can deduct up to $10,000 ($5,000 if married filing separately) in state and local taxes when you itemize your deductions.

You can report taxes for general sales, real estate, personal property and foreign taxes. However, you can’t deduct both general sales tax and income taxes. When deducting general sales tax, you can use your actual expenses or the sales tax tables.

You can also deduct state and local taxes for:

• Any estimated taxes you paid during the year
• Any prior year’s state or local income tax you paid during the year
• Real property levied for the general public welfare
• Personal property taxes on the value of personal property such as a boat or car

For additional information from the IRS, click here.

This entry was posted on Wednesday, November 18th, 2020 at 6:37 pm and is filed under Deductions. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.