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File State Income Tax

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File State Income Tax

File state income tax Index A Accuracy of deposits rule, Accuracy of Deposits Rule Additional Medicare Tax, Reminders, Additional Medicare Tax withholding. File state income tax , Additional Medicare Tax withholding adjustments. File state income tax Adjustments, 13. File state income tax Reporting Adjustments to Form 941 or Form 944 Aliens, nonresident, Withholding income taxes on the wages of nonresident alien employees. File state income tax , Withholding of social security and Medicare taxes on nonresident aliens. File state income tax Allocated tips, Allocated tips. File state income tax Archer MSAs, Health Savings Accounts and medical savings accounts. File state income tax Assistance (see Tax help) B Backup withholding, Nonpayroll Income Tax Withholding Business expenses, employee, Employee business expense reimbursements. File state income tax C Calendar, Calendar Certain foreign persons treated as American employers, Foreign persons treated as American employers. File state income tax Change of business address or responsible party, Change of Business Address or Responsible Party COBRA premium assistance credit, COBRA premium assistance credit. File state income tax Correcting employment taxes, Correcting employment taxes. File state income tax Correcting errors, (prior period adjustments) Form 941, Prior Period Adjustments D Delivery services, private, Private Delivery Services Depositing taxes Penalties, Deposit Penalties Rules, 11. File state income tax Depositing Taxes Differential wage payments, Differential wage payments. File state income tax E E-file, Electronic filing by reporting agents. File state income tax Election worker, State and local government employers. File state income tax Electronic, Electronic deposit requirement. File state income tax Electronic deposit requirement, Electronic deposit requirement. File state income tax Electronic Federal Tax Payment System (EFTPS), Electronic deposit requirement. File state income tax Electronic filing, Electronic Filing and Payment, Electronic filing by reporting agents. File state income tax Eligibility for employment, Hiring New Employees Employees defined, Employee status under common law. File state income tax Employer identification number (EIN), 1. File state income tax Employer Identification Number (EIN) Employer responsibilities, Paying Wages, Pensions, or Annuities F Family employees, 3. File state income tax Family Employees Final return, Final return. File state income tax Form 944, 12. File state income tax Filing Form 941 or Form 944 Fringe benefits, Fringe benefits. File state income tax FUTA tax, 14. File state income tax Federal Unemployment (FUTA) Tax G Government employers, Federal Government employers. File state income tax H Health insurance plans, Health insurance plans. File state income tax Health Savings Accounts (HSAs), Health Savings Accounts and medical savings accounts. File state income tax Hiring new employees, Hiring New Employees Household employees, Exceptions. File state income tax I Income tax withholding, Income Tax Withholding, 16. File state income tax How To Use the Income Tax Withholding Tables Information returns, Information Returns International social security agreements, International social security agreements. File state income tax L Long-term care insurance, Health insurance plans. File state income tax Lookback period, When To Deposit M Meals and lodging, Meals and lodging. File state income tax Medical care, Medical care reimbursements. File state income tax Medical savings accounts, Health Savings Accounts and medical savings accounts. File state income tax Medicare tax, Social Security and Medicare Taxes Mileage, Per diem or other fixed allowance. File state income tax Monthly deposit schedule, Monthly Deposit Schedule Moving expenses, Moving expenses. File state income tax N New employees, Hiring New Employees Noncash wages, Wages not paid in money. File state income tax Nonemployee compensation, Nonpayroll Income Tax Withholding P Part-time workers, Part-Time Workers Payroll period, 8. File state income tax Payroll Period Penalties, Deposit Penalties, Penalties. File state income tax Private delivery services, Private Delivery Services Publications (see Tax help) R Reconciling Forms W-2 and Forms 941 or 944, Reconciling Forms W-2, W-3, and 941 or 944. File state income tax Recordkeeping, Recordkeeping Reimbursements, Accountable plan. File state income tax , Nonaccountable plan. File state income tax , Per diem or other fixed allowance. File state income tax Repayments, wages, Wage Repayments S Seasonal employers, Exceptions. File state income tax Semiweekly deposit schedule, Semiweekly Deposit Schedule Sick pay, Sick pay. File state income tax Social security and Medicare taxes, Social Security and Medicare Taxes Social security number, employee, 4. File state income tax Employee's Social Security Number (SSN) Spouse, Business Owned and Operated by Spouses Standard mileage rate, Per diem or other fixed allowance. File state income tax Statutory employees, Employee status under common law. File state income tax Statutory nonemployees, Statutory employees. File state income tax Successor employer, Successor employer. File state income tax , Successor employer. File state income tax Supplemental wages, 7. File state income tax Supplemental Wages T Tax help, How To Get Tax Help Telephone help, Telephone Help Third-party sick pay tax adjustment, Adjustment of tax on third-party sick pay. File state income tax Tip Rate Determination Agreement, Tip Rate Determination and Education Program. File state income tax Tip Rate Determination and Education Program, Tip Rate Determination and Education Program. File state income tax Tips, 6. File state income tax Tips, Tips treated as supplemental wages. File state income tax Trust fund recovery penalty, Trust fund recovery penalty. File state income tax TTY/TDD information, How To Get Tax Help U Unemployment tax, federal, 14. File state income tax Federal Unemployment (FUTA) Tax V Vacation pay, Vacation pay. File state income tax W Wage repayments, Wage Repayments Wages defined, 5. File state income tax Wages and Other Compensation Wages not paid in money, Wages not paid in money. File state income tax Withholding Backup, Nonpayroll Income Tax Withholding Certificate, Using Form W-4 to figure withholding. File state income tax Exemption, Exemption from federal income tax withholding. File state income tax Fringe benefits, Withholding on fringe benefits. File state income tax Income tax, Income Tax Withholding Levies, Amounts exempt from levy on wages, salary, and other income. 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The File State Income Tax

File state income tax 22. File state income tax   Taxes Table of Contents IntroductionIndian tribal government. File state income tax Useful Items - You may want to see: Tests To Deduct Any Tax Income TaxesState and Local Income Taxes Foreign Income Taxes General Sales TaxesMotor vehicles. File state income tax Real Estate TaxesReal estate taxes for prior years. File state income tax Examples. File state income tax Form 1099-S. File state income tax Real Estate-Related Items You Cannot Deduct Personal Property Taxes Taxes and Fees You Cannot Deduct Where To Deduct Introduction This chapter discusses which taxes you can deduct if you itemize deductions on Schedule A (Form 1040). File state income tax It also explains which taxes you can deduct on other schedules or forms and which taxes you cannot deduct. File state income tax This chapter covers the following topics. File state income tax Income taxes (federal, state, local, and foreign). File state income tax General sales taxes (state and local). File state income tax Real estate taxes (state, local, and foreign). File state income tax Personal property taxes (state and local). File state income tax Taxes and fees you cannot deduct. File state income tax Use Table 22-1 as a guide to determine which taxes you can deduct. File state income tax The end of the chapter contains a section that explains which forms you use to deduct different types of taxes. File state income tax Business taxes. File state income tax   You can deduct certain taxes only if they are ordinary and necessary expenses of your trade or business or of producing income. File state income tax For information on these taxes, see Publication 535, Business Expenses. File state income tax State or local taxes. File state income tax   These are taxes imposed by the 50 states, U. File state income tax S. File state income tax possessions, or any of their political subdivisions (such as a county or city), or by the District of Columbia. File state income tax Indian tribal government. File state income tax   An Indian tribal government recognized by the Secretary of the Treasury as performing substantial government functions will be treated as a state for purposes of claiming a deduction for taxes. File state income tax Income taxes, real estate taxes, and personal property taxes imposed by that Indian tribal government (or by any of its subdivisions that are treated as political subdivisions of a state) are deductible. File state income tax General sales taxes. File state income tax   These are taxes imposed at one rate on retail sales of a broad range of classes of items. File state income tax Foreign taxes. File state income tax   These are taxes imposed by a foreign country or any of its political subdivisions. File state income tax Useful Items - You may want to see: Publication 514 Foreign Tax Credit for Individuals 530 Tax Information for Homeowners Form (and Instructions) Schedule A (Form 1040) Itemized Deductions Schedule E (Form 1040) Supplemental Income and Loss 1116 Foreign Tax Credit Tests To Deduct Any Tax The following two tests must be met for you to deduct any tax. File state income tax The tax must be imposed on you. File state income tax You must pay the tax during your tax year. File state income tax The tax must be imposed on you. File state income tax   In general, you can deduct only taxes imposed on you. File state income tax   Generally, you can deduct property taxes only if you are an owner of the property. File state income tax If your spouse owns the property and pays the real estate taxes, the taxes are deductible on your spouse's separate return or on your joint return. File state income tax You must pay the tax during your tax year. File state income tax   If you are a cash basis taxpayer, you can deduct only those taxes you actually paid during your tax year. File state income tax If you pay your taxes by check, the day you mail or deliver the check is the date of payment, provided the check is honored by the financial institution. File state income tax If you use a pay-by-phone account (such as a credit card or electronic funds withdrawal), the date reported on the statement of the financial institution showing when payment was made is the date of payment. File state income tax If you contest a tax liability and are a cash basis taxpayer, you can deduct the tax only in the year you actually pay it (or transfer money or other property to provide for satisfaction of the contested liability). File state income tax See Publication 538, Accounting Periods and Methods, for details. File state income tax    If you use an accrual method of accounting, see Publication 538 for more information. File state income tax Income Taxes This section discusses the deductibility of state and local income taxes (including employee contributions to state benefit funds) and foreign income taxes. File state income tax State and Local Income Taxes You can deduct state and local income taxes. File state income tax However, you can elect to deduct state and local general sales taxes instead of state and local income taxes. File state income tax See General Sales Taxes , later. File state income tax Exception. File state income tax    You cannot deduct state and local income taxes you pay on income that is exempt from federal income tax, unless the exempt income is interest income. File state income tax For example, you cannot deduct the part of a state's income tax that is on a cost-of-living allowance exempt from federal income tax. File state income tax What To Deduct Your deduction may be for withheld taxes, estimated tax payments, or other tax payments as follows. File state income tax Withheld taxes. File state income tax   You can deduct state and local income taxes withheld from your salary in the year they are withheld. File state income tax Your Form(s) W-2 will show these amounts. File state income tax Forms W-2G, 1099-G, 1099-R, and 1099-MISC may also show state and local income taxes withheld. File state income tax Estimated tax payments. File state income tax   You can deduct estimated tax payments you made during the year to a state or local government. File state income tax However, you must have a reasonable basis for making the estimated tax payments. File state income tax Any estimated state or local tax payments that are not made in good faith at the time of payment are not deductible. File state income tax For example, you made an estimated state income tax payment. File state income tax However, the estimate of your state tax liability shows that you will get a refund of the full amount of your estimated payment. File state income tax You had no reasonable basis to believe you had any additional liability for state income taxes and you cannot deduct the estimated tax payment. File state income tax Refund applied to taxes. File state income tax   You can deduct any part of a refund of prior-year state or local income taxes that you chose to have credited to your 2013 estimated state or local income taxes. File state income tax    Do not reduce your deduction by either of the following items. File state income tax Any state or local income tax refund (or credit) you expect to receive for 2013. File state income tax Any refund of (or credit for) prior-year state and local income taxes you actually received in 2013. File state income tax   However, part or all of this refund (or credit) may be taxable. File state income tax See Refund (or credit) of state or local income taxes , later. File state income tax Separate federal returns. File state income tax   If you and your spouse file separate state, local, and federal income tax returns, you each can deduct on your federal return only the amount of your own state and local income tax that you paid during the tax year. File state income tax Joint state and local returns. File state income tax   If you and your spouse file joint state and local returns and separate federal returns, each of you can deduct on your separate federal return a part of the total state and local income taxes paid during the tax year. File state income tax You can deduct only the amount of the total taxes that is proportionate to your gross income compared to the combined gross income of you and your spouse. File state income tax However, you cannot deduct more than the amount you actually paid during the year. File state income tax You can avoid this calculation if you and your spouse are jointly and individually liable for the full amount of the state and local income taxes. File state income tax If so, you and your spouse can deduct on your separate federal returns the amount you each actually paid. File state income tax Joint federal return. File state income tax   If you file a joint federal return, you can deduct the total of the state and local income taxes both of you paid. File state income tax Contributions to state benefit funds. File state income tax    As an employee, you can deduct mandatory contributions to state benefit funds withheld from your wages that provide protection against loss of wages. File state income tax For example, certain states require employees to make contributions to state funds providing disability or unemployment insurance benefits. File state income tax Mandatory payments made to the following state benefit funds are deductible as state income taxes on Schedule A (Form 1040), line 5. File state income tax Alaska Unemployment Compensation Fund. File state income tax California Nonoccupational Disability Benefit Fund. File state income tax New Jersey Nonoccupational Disability Benefit Fund. File state income tax New Jersey Unemployment Compensation Fund. File state income tax New York Nonoccupational Disability Benefit Fund. File state income tax Pennsylvania Unemployment Compensation Fund. File state income tax Rhode Island Temporary Disability Benefit Fund. File state income tax Washington State Supplemental Workmen's Compensation Fund. File state income tax    Employee contributions to private or voluntary disability plans are not deductible. File state income tax Refund (or credit) of state or local income taxes. File state income tax   If you receive a refund of (or credit for) state or local income taxes in a year after the year in which you paid them, you may have to include the refund in income on Form 1040, line 10, in the year you receive it. File state income tax This includes refunds resulting from taxes that were overwithheld, applied from a prior year return, not figured correctly, or figured again because of an amended return. File state income tax If you did not itemize your deductions in the previous year, do not include the refund in income. File state income tax If you deducted the taxes in the previous year, include all or part of the refund on Form 1040, line 10, in the year you receive the refund. File state income tax For a discussion of how much to include, see Recoveries in chapter 12. File state income tax Foreign Income Taxes Generally, you can take either a deduction or a credit for income taxes imposed on you by a foreign country or a U. File state income tax S. File state income tax possession. File state income tax However, you cannot take a deduction or credit for foreign income taxes paid on income that is exempt from U. File state income tax S. File state income tax tax under the foreign earned income exclusion or the foreign housing exclusion. File state income tax For information on these exclusions, see Publication 54, Tax Guide for U. File state income tax S. File state income tax Citizens and Resident Aliens Abroad. File state income tax For information on the foreign tax credit, see Publication 514. File state income tax General Sales Taxes You can elect to deduct state and local general sales taxes, instead of state and local income taxes, as an itemized deduction on Schedule A (Form 1040), line 5b. File state income tax You can use either your actual expenses or the state and local sales tax tables to figure your sales tax deduction. File state income tax Actual expenses. File state income tax   Generally, you can deduct the actual state and local general sales taxes (including compensating use taxes) if the tax rate was the same as the general sales tax rate. File state income tax However, sales taxes on food, clothing, medical supplies, and motor vehicles are deductible as a general sales tax even if the tax rate was less than the general sales tax rate. File state income tax If you paid sales tax on a motor vehicle at a rate higher than the general sales tax rate, you can deduct only the amount of tax that you would have paid at the general sales tax rate on that vehicle. File state income tax If you use the actual expenses method, you must have receipts to show the general sales taxes paid. File state income tax Do not include sales taxes paid on items used in your trade or business. File state income tax Motor vehicles. File state income tax   For purposes of this section, motor vehicles include cars, motorcycles, motor homes, recreational vehicles, sport utility vehicles, trucks, vans, and off-road vehicles. File state income tax This also includes sales taxes on a leased motor vehicle, but not on vehicles used in your trade or business. File state income tax Optional sales tax tables. File state income tax   Instead of using your actual expenses, you can figure your state and local general sales tax deduction using the state and local sales tax tables in the Instructions for Schedule A (Form 1040). File state income tax You may also be able to add the state and local general sales taxes paid on certain specified items. File state income tax   Your applicable table amount is based on the state where you live, your income, and the number of exemptions claimed on your tax return. File state income tax Your income is your adjusted gross income plus any nontaxable items such as the following. File state income tax Tax-exempt interest. File state income tax Veterans' benefits. File state income tax Nontaxable combat pay. File state income tax Workers' compensation. File state income tax Nontaxable part of social security and railroad retirement benefits. File state income tax Nontaxable part of IRA, pension, or annuity distributions, excluding rollovers. File state income tax Public assistance payments. File state income tax If you lived in different states during the same tax year, you must prorate your applicable table amount for each state based on the days you lived in each state. File state income tax See the Instructions for Schedule A (Form 1040), line 5, for details. File state income tax Real Estate Taxes Deductible real estate taxes are any state, local, or foreign taxes on real property levied for the general public welfare. File state income tax You can deduct these taxes only if they are based on the assessed value of the real property and charged uniformly against all property under the jurisdiction of the taxing authority. File state income tax Deductible real estate taxes generally do not include taxes charged for local benefits and improvements that increase the value of the property. File state income tax They also do not include itemized charges for services (such as trash collection) assessed against specific property or certain people, even if the charge is paid to the taxing authority. File state income tax For more information about taxes and charges that are not deductible, see Real Estate-Related Items You Cannot Deduct , later. File state income tax Tenant-shareholders in a cooperative housing corporation. File state income tax   Generally, if you are a tenant-stockholder in a cooperative housing corporation, you can deduct the amount paid to the corporation that represents your share of the real estate taxes the corporation paid or incurred for your dwelling unit. File state income tax The corporation should provide you with a statement showing your share of the taxes. File state income tax For more information, see Special Rules for Cooperatives in Publication 530. File state income tax Division of real estate taxes between buyers and sellers. File state income tax   If you bought or sold real estate during the year, the real estate taxes must be divided between the buyer and the seller. File state income tax   The buyer and the seller must divide the real estate taxes according to the number of days in the real property tax year (the period to which the tax is imposed relates) that each owned the property. File state income tax The seller is treated as paying the taxes up to, but not including, the date of sale. File state income tax The buyer is treated as paying the taxes beginning with the date of sale. File state income tax This applies regardless of the lien dates under local law. File state income tax Generally, this information is included on the settlement statement provided at the closing. File state income tax    If you (the seller) cannot deduct taxes until they are paid because you use the cash method of accounting, and the buyer of your property is personally liable for the tax, you are considered to have paid your part of the tax at the time of the sale. File state income tax This lets you deduct the part of the tax to the date of sale even though you did not actually pay it. File state income tax However, you must also include the amount of that tax in the selling price of the property. File state income tax The buyer must include the same amount in his or her cost of the property. File state income tax   You figure your deduction for taxes on each property bought or sold during the real property tax year as follows. File state income tax Worksheet 22-1. File state income tax Figuring Your Real Estate Tax Deduction 1. File state income tax Enter the total real estate taxes for the real property tax year   2. File state income tax Enter the number of days in the real property tax year that you owned the property   3. File state income tax Divide line 2 by 365 (for leap years, divide line 2 by 366) . File state income tax 4. File state income tax Multiply line 1 by line 3. File state income tax This is your deduction. File state income tax Enter it on Schedule A (Form 1040), line 6   Note. File state income tax Repeat steps 1 through 4 for each property you bought or sold during the real property tax year. File state income tax Your total deduction is the sum of the line 4 amounts for all of the properties. File state income tax Real estate taxes for prior years. File state income tax   Do not divide delinquent taxes between the buyer and seller if the taxes are for any real property tax year before the one in which the property is sold. File state income tax Even if the buyer agrees to pay the delinquent taxes, the buyer cannot deduct them. File state income tax The buyer must add them to the cost of the property. File state income tax The seller can deduct these taxes paid by the buyer. File state income tax However, the seller must include them in the selling price. File state income tax Examples. File state income tax   The following examples illustrate how real estate taxes are divided between buyer and seller. File state income tax Example 1. File state income tax Dennis and Beth White's real property tax year for both their old home and their new home is the calendar year, with payment due August 1. File state income tax The tax on their old home, sold on May 7, was $620. File state income tax The tax on their new home, bought on May 3, was $732. File state income tax Dennis and Beth are considered to have paid a proportionate share of the real estate taxes on the old home even though they did not actually pay them to the taxing authority. File state income tax On the other hand, they can claim only a proportionate share of the taxes they paid on their new property even though they paid the entire amount. File state income tax Dennis and Beth owned their old home during the real property tax year for 126 days (January 1 to May 6, the day before the sale). File state income tax They figure their deduction for taxes on their old home as follows. File state income tax Worksheet 22-1. File state income tax Figuring Your Real Estate Tax Deduction — Taxes on Old Home 1. File state income tax Enter the total real estate taxes for the real property tax year $620 2. File state income tax Enter the number of days in the real property tax year that you owned the property 126 3. File state income tax Divide line 2 by 365 (for leap years, divide line 2 by 366) . File state income tax 3452 4. File state income tax Multiply line 1 by line 3. File state income tax This is your deduction. File state income tax Enter it on Schedule A (Form 1040), line 6 $214 Since the buyers of their old home paid all of the taxes, Dennis and Beth also include the $214 in the selling price of the old home. File state income tax (The buyers add the $214 to their cost of the home. File state income tax ) Dennis and Beth owned their new home during the real property tax year for 243 days (May 3 to December 31, including their date of purchase). File state income tax They figure their deduction for taxes on their new home as follows. File state income tax Worksheet 22-1. File state income tax Figuring Your Real Estate Tax Deduction — Taxes on New Home 1. File state income tax Enter the total real estate taxes for the real property tax year $732 2. File state income tax Enter the number of days in the real property tax year that you owned the property 243 3. File state income tax Divide line 2 by 365 (for leap years, divide line 2 by 366) . File state income tax 6658 4. File state income tax Multiply line 1 by line 3. File state income tax This is your deduction. File state income tax Enter it on Schedule A (Form 1040), line 6 $487 Since Dennis and Beth paid all of the taxes on the new home, they add $245 ($732 paid less $487 deduction) to their cost of the new home. File state income tax (The sellers add this $245 to their selling price and deduct the $245 as a real estate tax. File state income tax ) Dennis and Beth's real estate tax deduction for their old and new homes is the sum of $214 and $487, or $701. File state income tax They will enter this amount on Schedule A (Form 1040), line 6. File state income tax Example 2. File state income tax George and Helen Brown bought a new home on May 3, 2013. File state income tax Their real property tax year for the new home is the calendar year. File state income tax Real estate taxes for 2012 were assessed in their state on January 1, 2013. File state income tax The taxes became due on May 31, 2013, and October 31, 2013. File state income tax The Browns agreed to pay all taxes due after the date of purchase. File state income tax Real estate taxes for 2012 were $680. File state income tax They paid $340 on May 31, 2013, and $340 on October 31, 2013. File state income tax These taxes were for the 2012 real property tax year. File state income tax The Browns cannot deduct them since they did not own the property until 2013. File state income tax Instead, they must add $680 to the cost of their new home. File state income tax In January 2014, the Browns receive their 2013 property tax statement for $752, which they will pay in 2014. File state income tax The Browns owned their new home during the 2013 real property tax year for 243 days (May 3 to December 31). File state income tax They will figure their 2014 deduction for taxes as follows. File state income tax Worksheet 22-1. File state income tax Figuring Your Real Estate Tax Deduction — Taxes on New Home 1. File state income tax Enter the total real estate taxes for the real property tax year $752 2. File state income tax Enter the number of days in the real property tax year that you owned the property 243 3. File state income tax Divide line 2 by 365 (for leap years, divide line 2 by 366) . File state income tax 6658 4. File state income tax Multiply line 1 by line 3. File state income tax This is your deduction. File state income tax Claim it on Schedule A (Form 1040), line 6 $501 The remaining $251 ($752 paid less $501 deduction) of taxes paid in 2014, along with the $680 paid in 2013, is added to the cost of their new home. File state income tax Because the taxes up to the date of sale are considered paid by the seller on the date of sale, the seller is entitled to a 2013 tax deduction of $931. File state income tax This is the sum of the $680 for 2012 and the $251 for the 122 days the seller owned the home in 2013. File state income tax The seller must also include the $931 in the selling price when he or she figures the gain or loss on the sale. File state income tax The seller should contact the Browns in January 2014 to find out how much real estate tax is due for 2013. File state income tax Form 1099-S. File state income tax   For certain sales or exchanges of real estate, the person responsible for closing the sale (generally the settlement agent) prepares Form 1099-S, Proceeds From Real Estate Transactions, to report certain information to the IRS and to the seller of the property. File state income tax Box 2 of Form 1099-S is for the gross proceeds from the sale and should include the portion of the seller's real estate tax liability that the buyer will pay after the date of sale. File state income tax The buyer includes these taxes in the cost basis of the property, and the seller both deducts this amount as a tax paid and includes it in the sales price of the property. File state income tax   For a real estate transaction that involves a home, any real estate tax the seller paid in advance but that is the liability of the buyer appears on Form 1099-S, box 5. File state income tax The buyer deducts this amount as a real estate tax, and the seller reduces his or her real estate tax deduction (or includes it in income) by the same amount. File state income tax See Refund (or rebate) , later. File state income tax Taxes placed in escrow. File state income tax   If your monthly mortgage payment includes an amount placed in escrow (put in the care of a third party) for real estate taxes, you may not be able to deduct the total amount placed in escrow. File state income tax You can deduct only the real estate tax that the third party actually paid to the taxing authority. File state income tax If the third party does not notify you of the amount of real estate tax that was paid for you, contact the third party or the taxing authority to find the proper amount to show on your return. File state income tax Tenants by the entirety. File state income tax   If you and your spouse held property as tenants by the entirety and you file separate federal returns, each of you can deduct only the taxes each of you paid on the property. File state income tax Divorced individuals. File state income tax   If your divorce or separation agreement states that you must pay the real estate taxes for a home owned by you and your spouse, part of your payments may be deductible as alimony and part as real estate taxes. File state income tax See Taxes and insurance in chapter 18 for more information. File state income tax Ministers' and military housing allowances. File state income tax   If you are a minister or a member of the uniformed services and receive a housing allowance that you can exclude from income, you still can deduct all of the real estate taxes you pay on your home. File state income tax Refund (or rebate). File state income tax   If you received a refund or rebate in 2013 of real estate taxes you paid in 2013, you must reduce your deduction by the amount refunded to you. File state income tax If you received a refund or rebate in 2013 of real estate taxes you deducted in an earlier year (either as an itemized deduction or an increase to your standard deduction), you generally must include the refund or rebate in income in the year you receive it. File state income tax However, the amount you include in income is limited to the amount of the deduction that reduced your tax in the earlier year. File state income tax For more information, see Recoveries in chapter 12. File state income tax Table 22-1. File state income tax Which Taxes Can You Deduct? Type of Tax You Can Deduct You Cannot Deduct Fees and Charges Fees and charges that are expenses of your trade or business or of producing income. File state income tax Fees and charges that are not expenses of your trade or business or of producing income, such as fees for driver's licenses, car inspections, parking, or charges for water bills (see Taxes and Fees You Cannot Deduct ). File state income tax     Fines and penalties. File state income tax Income Taxes State and local income taxes. File state income tax Federal income taxes. File state income tax   Foreign income taxes. File state income tax     Employee contributions to state funds listed under Contributions to state benefit funds . File state income tax Employee contributions to private or voluntary disability plans. File state income tax     State and local general sales taxes if you choose to deduct state and local income taxes. File state income tax General Sales Taxes State and local general sales taxes, including compensating use taxes. File state income tax State and local income taxes if you choose to deduct state and local general sales taxes. File state income tax Other Taxes Taxes that are expenses of your trade or business. File state income tax Federal excise taxes, such as tax on gasoline, that are not expenses of your trade or business or of producing income. File state income tax   Taxes on property producing rent or royalty income. File state income tax Per capita taxes. File state income tax   Occupational taxes. File state income tax See chapter 28. File state income tax     One-half of self-employment tax paid. File state income tax   Personal Property Taxes State and local personal property taxes. File state income tax Customs duties that are not expenses of your trade or business or of producing income. File state income tax Real Estate Taxes State and local real estate taxes. File state income tax Real estate taxes that are treated as imposed on someone else (see Division of real estate taxes between buyers and sellers ). File state income tax   Foreign real estate taxes. File state income tax Taxes for local benefits (with exceptions). File state income tax See Real Estate-Related Items You Cannot Deduct . File state income tax   Tenant's share of real estate taxes paid by  cooperative housing corporation. File state income tax Trash and garbage pickup fees (with exceptions). File state income tax See Real Estate-Related Items You Cannot Deduct . File state income tax     Rent increase due to higher real estate taxes. File state income tax     Homeowners' association charges. File state income tax Real Estate-Related Items You Cannot Deduct Payments for the following items generally are not deductible as real estate taxes. File state income tax Taxes for local benefits. File state income tax Itemized charges for services (such as trash and garbage pickup fees). File state income tax Transfer taxes (or stamp taxes). File state income tax Rent increases due to higher real estate taxes. File state income tax Homeowners' association charges. File state income tax Taxes for local benefits. File state income tax   Deductible real estate taxes generally do not include taxes charged for local benefits and improvements tending to increase the value of your property. File state income tax These include assessments for streets, sidewalks, water mains, sewer lines, public parking facilities, and similar improvements. File state income tax You should increase the basis of your property by the amount of the assessment. File state income tax   Local benefit taxes are deductible only if they are for maintenance, repair, or interest charges related to those benefits. File state income tax If only a part of the taxes is for maintenance, repair, or interest, you must be able to show the amount of that part to claim the deduction. File state income tax If you cannot determine what part of the tax is for maintenance, repair, or interest, none of it is deductible. File state income tax    Taxes for local benefits may be included in your real estate tax bill. File state income tax If your taxing authority (or mortgage lender) does not furnish you a copy of your real estate tax bill, ask for it. File state income tax You should use the rules above to determine if the local benefit tax is deductible. File state income tax Contact the taxing authority if you need additional information about a specific charge on your real estate tax bill. File state income tax Itemized charges for services. File state income tax    An itemized charge for services assessed against specific property or certain people is not a tax, even if the charge is paid to the taxing authority. File state income tax For example, you cannot deduct the charge as a real estate tax if it is: A unit fee for the delivery of a service (such as a $5 fee charged for every 1,000 gallons of water you use), A periodic charge for a residential service (such as a $20 per month or $240 annual fee charged to each homeowner for trash collection), or A flat fee charged for a single service provided by your government (such as a $30 charge for mowing your lawn because it was allowed to grow higher than permitted under your local ordinance). File state income tax    You must look at your real estate tax bill to determine if any nondeductible itemized charges, such as those listed above, are included in the bill. File state income tax If your taxing authority (or mortgage lender) does not furnish you a copy of your real estate tax bill, ask for it. File state income tax Exception. File state income tax   Service charges used to maintain or improve services (such as trash collection or police and fire protection) are deductible as real estate taxes if: The fees or charges are imposed at a like rate against all property in the taxing jurisdiction, The funds collected are not earmarked; instead, they are commingled with general revenue funds, and Funds used to maintain or improve services are not limited to or determined by the amount of these fees or charges collected. File state income tax Transfer taxes (or stamp taxes). File state income tax   Transfer taxes and similar taxes and charges on the sale of a personal home are not deductible. File state income tax If they are paid by the seller, they are expenses of the sale and reduce the amount realized on the sale. File state income tax If paid by the buyer, they are included in the cost basis of the property. File state income tax Rent increase due to higher real estate taxes. File state income tax   If your landlord increases your rent in the form of a tax surcharge because of increased real estate taxes, you cannot deduct the increase as taxes. File state income tax Homeowners' association charges. File state income tax   These charges are not deductible because they are imposed by the homeowners' association, rather than the state or local government. File state income tax Personal Property Taxes Personal property tax is deductible if it is a state or local tax that is: Charged on personal property, Based only on the value of the personal property, and Charged on a yearly basis, even if it is collected more or less than once a year. File state income tax A tax that meets the above requirements can be considered charged on personal property even if it is for the exercise of a privilege. File state income tax For example, a yearly tax based on value qualifies as a personal property tax even if it is called a registration fee and is for the privilege of registering motor vehicles or using them on the highways. File state income tax If the tax is partly based on value and partly based on other criteria, it may qualify in part. File state income tax Example. File state income tax Your state charges a yearly motor vehicle registration tax of 1% of value plus 50 cents per hundredweight. File state income tax You paid $32 based on the value ($1,500) and weight (3,400 lbs. File state income tax ) of your car. File state income tax You can deduct $15 (1% × $1,500) as a personal property tax because it is based on the value. File state income tax The remaining $17 ($. File state income tax 50 × 34), based on the weight, is not deductible. File state income tax Taxes and Fees You Cannot Deduct Many federal, state, and local government taxes are not deductible because they do not fall within the categories discussed earlier. File state income tax Other taxes and fees, such as federal income taxes, are not deductible because the tax law specifically prohibits a deduction for them. File state income tax See Table 22-1. File state income tax Taxes and fees that are generally not deductible include the following items. File state income tax Employment taxes. File state income tax This includes social security, Medicare, and railroad retirement taxes withheld from your pay. File state income tax However, one-half of self-employment tax you pay is deductible. File state income tax In addition, the social security and other employment taxes you pay on the wages of a household worker may be included in medical expenses that you can deduct or child care expenses that allow you to claim the child and dependent care credit. File state income tax For more information, see chapters 21 and 32. File state income tax Estate, inheritance, legacy, or succession taxes. File state income tax However, you can deduct the estate tax attributable to income in respect of a decedent if you, as a beneficiary, must include that income in your gross income. File state income tax In that case, deduct the estate tax as a miscellaneous deduction that is not subject to the 2%-of-adjusted-gross-income limit. File state income tax For more information, see Publication 559, Survivors, Executors, and Administrators. File state income tax Federal income taxes. File state income tax This includes income taxes withheld from your pay. File state income tax Fines and penalties. File state income tax You cannot deduct fines and penalties paid to a government for violation of any law, including related amounts forfeited as collateral deposits. File state income tax Gift taxes. File state income tax License fees. File state income tax You cannot deduct license fees for personal purposes (such as marriage, driver's, and dog license fees). File state income tax Per capita taxes. File state income tax You cannot deduct state or local per capita taxes. File state income tax Many taxes and fees other than those listed above are also nondeductible, unless they are ordinary and necessary expenses of a business or income producing activity. File state income tax For other nondeductible items, see Real Estate-Related Items You Cannot Deduct , earlier. File state income tax Where To Deduct You deduct taxes on the following schedules. File state income tax State and local income taxes. File state income tax    These taxes are deducted on Schedule A (Form 1040), line 5, even if your only source of income is from business, rents, or royalties. File state income tax Check box a on line 5. File state income tax General sales taxes. File state income tax   Sales taxes are deducted on Schedule A (Form 1040), line 5. File state income tax You must check box b on line 5. File state income tax If you elect to deduct sales taxes, you cannot deduct state and local income taxes on Schedule A (Form 1040), line 5, box a. File state income tax Foreign income taxes. File state income tax   Generally, income taxes you pay to a foreign country or U. File state income tax S. File state income tax possession can be claimed as an itemized deduction on Schedule A (Form 1040), line 8, or as a credit against your U. File state income tax S. File state income tax income tax on Form 1040, line 47. File state income tax To claim the credit, you may have to complete and attach Form 1116. File state income tax For more information, see chapter 37, the Form 1040 instructions, or Publication 514. File state income tax Real estate taxes and personal property taxes. File state income tax    Real estate and personal property taxes are deducted on Schedule A (Form 1040), lines 6 and 7, respectively, unless they are paid on property used in your business, in which case they are deducted on Schedule C, Schedule C-EZ, or Schedule F (Form 1040). File state income tax Taxes on property that produces rent or royalty income are deducted on Schedule E (Form 1040). File state income tax Self-employment tax. File state income tax    Deduct one-half of your self-employment tax on Form 1040, line 27. File state income tax Other taxes. File state income tax    All other deductible taxes are deducted on Schedule A (Form 1040), line 8. File state income tax Prev  Up  Next   Home   More Online Publications