Tax Deductions:
Deducting Paid Taxes
They may deduct certain taxes they pay if they itemize deductions on Schedule A (Form 1040.) If their adjusted gross income is in excess of $126,600 ($63,300 if they are married and filing separately), the overall amount of their itemized deductions may be limited. Following is a list of commonly overlooked deductions related to the taxes your client pays.
- Income taxes, real estate taxes and personal property taxes imposed by an Indian tribal government
- State, county, city and municipal taxes
- Foreign income taxes
- State and local real estate taxes
- Foreign real estate taxes
- State and local personal property taxes
- Business taxes that are a necessary expenses of their trade or of producing income
- One-half of paid self-employment taxes
- Occupational taxes
Taxes paid on properties that produce rent or royalties