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 2007, or
- Refund of, or credit for, prior year state and local income taxes you actually received in the tax year.