Tax Deduction: Taxes Paid

You can claim a federal tax deduction on taxes you've already paid: state and local income taxes, real estate taxes, etc.

Make filing easier by doing it online

Claiming deductions is especially easy with Turbo Tax.

With Turbo Tax, you can work on your return for free, until you file.Start now.

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Or, you can file an extension online with H&R Block.

What qualifies for a tax deduction for paid taxes

What qualifies:

  • State income tax
  • local income tax
  • foreign income tax
  • real property tax
  • personal property tax

What does not qualify. Taxes from:

  • a business,
  • a farm,
  • royalties
  • rental income

Also, taxes paid in a year other than the one you are filling for do not qualify.

How to claim a tax deduction for paid taxes

If you efile, your state and local income taxes will already be entered. The amount of paid real estate taxes is on Form 1098, enter this amount as an itemized tax deduction.

Claiming other paid taxes as deductions

Personal property tax is tax paid on items you own: jewelry, collectibles, vehicles. Make sure you only claim the tax you pay on these items (and not other fees).

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Make filing simple by using the H&R Block e-filing interview.

Related IRS publications

With a paper return, you need to attach Schedule A with your return. The instruction booklet for Schedule A provides more information about your "taxes paid" deductions.

Note: you will need an Adobe Acrobat Reader to view these publications, which you can get here. (But you probably already have it.)