PriorTax | What Are Non-Business Deductible Taxes?

What Are Non-Business Deductible Taxes?

There are five types of non-business taxes you can deduct on your federal tax return:

  • State, local, and foreign income taxes - you can deduct the state and local taxes withheld from your wages (as shown on your W-2) as well as any estimated taxes or prior year taxes you paid during the year. For foreign income taxes you can generally take either a deduction or a credit.


  • State, local, and foreign real estate taxes - you can deduct taxes based on the assessed value of the property and charged uniformly against all property in the jurisdiction.


  • State, local, and personal property taxes - deductible personal property taxes are those based only on the value of personal property such as a boat or car.


  • State and local sales taxes - for 2011 taxes, you have the option of claiming state and local sales taxes, but if you do so, you cannot claim state and local income tax as well.


  • Qualified motor vehicle taxes.


  • Note that you cannot deduct federal income taxes, social security taxes, stamp taxes, transfer taxes on the sale of property, homeowner’s association fees, estate and inheritance taxes, or service charges for water, sewer, or trash collection.