Using schedule a, you can itemize your deductions when you file your tax return. Doing so allows you to deduct specific taxes that you are required to pay during the tax year. You are only allowed to deduct taxes that you yourself are responsible for, meaning you can deduct taxes you paid for another taxpayer.
Taxes that qualify for an itemized deduction include:
- State and local income tax
- Foreign income tax not claimed on Form 1116
- Co-op taxes you are responsible for
- Contributions to certain funds, such as state run benefit programs like the California State disability insurance, which are considered taxes
- Real estate taxes, the money in escrow by the mortgage lender is not eligible
Not all taxes can be deducted. Some examples of nondeductible taxes you may have paid throughout the year include:
- FICA tax
- Federal income tax
- Excise tax
- Sewer and garbage tax
- Licensing fees such as driver’s license, hunting license, or dog license
