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