Do Not Deduct:
- Federal income and excise taxes.
- Social security, Medicare, Federal unemployment (FUTA), and railroad retirement (RRTA) taxes.
- Customs duties.
- Federal estate and gift taxes.
- Certain state and local taxes, including: general sales tax, tax on gasoline, car inspection fees, assessments for sidewalks or other improvements to your property, tax you paid for someone else, and license fees (marriage, driver's, dog, etc.).
State and Local Income or General Sales Taxes. You can elect to deduct state and local general sales taxes instead of state and local income taxes. You cannot deduct both.
State and local income taxes. Include on this line the state and local income taxes listed below.
- State and local income taxes withheld from your salary during the tax year. Your Form(s) W-2 will show these amounts. Forms W-2G, 1099-G, 1099-R, and 1099-MISC may also show state and local income taxes withheld.
- State and local income taxes paid in the tax year for a prior year, such as taxes paid with your previous year state or local income tax return. Do not include penalties or interest.
- State and local estimated tax payments made during the tax year, including any part of a prior year refund that you chose to have credited to your previous year state or local income taxes.
- Mandatory contributions you made to the California, New Jersey, or New York Nonoccupational Disability Benefit Fund, Rhode Island Temporary Disability Benefit Fund, or Washington State Supplemental Workmen A's Compensation Fund.
Do not reduce your deduction by any:
- State or local income tax refund or credit you expect to receive for the current tax year, or
- Refund of, or credit for, prior year state and local income taxes you actually received in the tax year.
State and local general sales taxes. To figure your deduction, you can use either of the following methods.
- The actual state and local general sales taxes (including compensating use taxes) you paid plus any selective sales taxes if the tax rate was the same as the general sales tax rate. For selective sales taxes on food, clothing, medical supplies, and motor vehicles, the tax is deductible even if the tax rate was less than the general sales tax rate. For selective sales taxes on motor vehicles for which the tax rate was more than the general sales tax rate, the tax is deductible only up to the amount of tax that would have been imposed at the general- sales tax rate. Do not include sales taxes paid on items used in your trade or business.
- The Optional State Sales Tax Tables, which are available in Pub. 600. If you use the Optional State Sales Tax Tables, you can add to the table amount any state and local general sales taxes you paid on motor vehicles, boats, and any other items specified- in Pub. 600. The deductible amount of tax on motor vehicles cannot exceed the tax that would have been imposed at the general sales tax rate.