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Free H&r Block Efile

2011 Irs Form 1040ezHr Block Taxes OnlineFile 1040x Online Free2010 Form 1040Free Taxes FilingEfile Tax Returns1040x 2011Amending Tax ReturnAmend A 2013 Tax ReturnFile Tax ReturnFree 2010 TurbotaxAmend A Federal Tax ReturnCan I File An Amended Tax Return OnlineAmended Tax Return More:label_amended_20tax_20return More:bizfinanceTax Form For College Students1040ez Tax Form 2013Free E Filing For State TaxesTurbo Tax 2007Taxes LateDownload 2010 Tax FormsFile Federal Taxes Online For FreeAmend Federal Tax Return 2011File 1040ez Online1040nr Ez FormBlank Printable 1040ez FormFile Taxes Free Federal And StateIrs 2012 Tax FormsH And R Block Free Tax Return2010incometax FormsH And R Block For MilitaryState Tax Forms 2012File State Taxes FreeIncome Tax Filing OnlineIrs 1040 Ez 2012States Without Income Tax1040ez Earned Income CreditFree State Tax Filing 20121040 ExFree H&r Block Efile1040x Address Send

Free H&r Block Efile

Free h&r block efile 3. Free h&r block efile   Exclusions From Gross Income Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Resident AliensForeign Earned Income and Housing Amount Nonresident AliensInterest Income Dividend Income Services Performed for Foreign Employer Gambling Winnings From Dog or Horse Racing Gain From the Sale of Your Main Home Scholarships and Fellowship GrantsExpenses that do not qualify. Free h&r block efile Introduction Resident and nonresident aliens are allowed exclusions from gross income if they meet certain conditions. Free h&r block efile An exclusion from gross income is generally income you receive that is not included in your U. Free h&r block efile S. Free h&r block efile income and is not subject to U. Free h&r block efile S. Free h&r block efile tax. Free h&r block efile This chapter covers some of the more common exclusions allowed to resident and nonresident aliens. Free h&r block efile Topics - This chapter discusses: Nontaxable interest, Nontaxable dividends, Certain compensation paid by a foreign employer, Gain from sale of home, and Scholarships and fellowship grants. Free h&r block efile Useful Items - You may want to see: Publication 54 Tax Guide for U. Free h&r block efile S. Free h&r block efile Citizens and Resident Aliens Abroad 523 Selling Your Home See chapter 12 for information about getting these publications. Free h&r block efile Resident Aliens Resident aliens may be able to exclude the following items from their gross income. Free h&r block efile Foreign Earned Income and Housing Amount If you are physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months, you may qualify for the foreign earned income exclusion. Free h&r block efile The exclusion is $97,600 in 2013. Free h&r block efile In addition, you may be able to exclude or deduct certain foreign housing amounts. Free h&r block efile You may also qualify if you are a bona fide resident of a foreign country and you are a citizen or national of a country with which the United States has an income tax treaty. Free h&r block efile For more information, see Publication 54. Free h&r block efile Foreign country. Free h&r block efile    A foreign country is any territory under the sovereignty of a government other than that of the United States. Free h&r block efile   The term “foreign country” includes the country's territorial waters and airspace, but not international waters and the airspace above them. Free h&r block efile It also includes the seabed and subsoil of those submarine areas adjacent to the country's territorial waters over which it has exclusive rights under international law to explore and exploit the natural resources. Free h&r block efile   The term “foreign country” does not include U. Free h&r block efile S. Free h&r block efile possessions or territories. Free h&r block efile It does not include the Antarctic region. Free h&r block efile Nonresident Aliens Nonresident aliens can exclude the following items from their gross income. Free h&r block efile Interest Income Interest income that is not connected with a U. Free h&r block efile S. Free h&r block efile trade or business is excluded from income if it is from: Deposits (including certificates of deposit) with persons in the banking business, Deposits or withdrawable accounts with mutual savings banks, cooperative banks, credit unions, domestic building and loan associations, and other savings institutions chartered and supervised as savings and loan or similar associations under federal or state law (if the interest paid or credited can be deducted by the association), and Amounts held by an insurance company under an agreement to pay interest on them. Free h&r block efile State and local government obligations. Free h&r block efile   Interest on obligations of a state or political subdivision, the District of Columbia, or a U. Free h&r block efile S. Free h&r block efile possession, generally is not included in income. Free h&r block efile However, interest on certain private activity bonds, arbitrage bonds, and certain bonds not in registered form is included in income. Free h&r block efile Portfolio interest. Free h&r block efile   Interest and original issue discount that qualifies as portfolio interest is not subject to NRA withholding. Free h&r block efile To qualify as portfolio interest, the interest must be paid on obligations issued after July 18, 1984, and otherwise subject to NRA withholding. Free h&r block efile Note. Free h&r block efile For obligations issued after March 18, 2012, portfolio interest does not include interest paid on debt that is not in registered form. Free h&r block efile Before March 19, 2012, portfolio interest included interest on certain registered and nonregistered (bearer) bonds if the obligations meet the requirements described below. Free h&r block efile Obligations in registered form. Free h&r block efile   Portfolio interest includes interest paid on an obligation that is in registered form, and for which you have received documentation that the beneficial owner of the obligation is not a United States person. Free h&r block efile   Generally, an obligation is in registered form if: (i) the obligation is registered as to both principal and any stated interest with the issuer (or its agent) and any transfer of the obligation may be effected only by surrender of the old obligation and reissuance to the new holder; (ii) the right to principal and stated interest with respect to the obligation may be transferred only through a book entry system maintained by the issuer or its agent; or (iii) the obligation is registered as to both principal and stated interest with the issuer or its agent and can be transferred both by surrender and reissuance and through a book entry system. Free h&r block efile   An obligation that would otherwise be considered to be in registered form is not considered to be in registered form as of a particular time if it can be converted at any time in the future into an obligation that is not in registered form. Free h&r block efile For more information on whether obligations are considered to be in registered form, see Portfolio interest in Publication 515. Free h&r block efile Obligations not in registered form. Free h&r block efile    For obligations issued before March 19, 2012, interest on an obligation that is not in registered form (bearer obligation) is portfolio interest if the obligation is foreign-targeted. Free h&r block efile A bearer obligation is foreign-targeted if: There are arrangements to ensure that the obligation will be sold, or resold in connection with the original issue, only to a person who is not a United States person, Interest on the obligation is payable only outside the United States and its possessions, and The face of the obligation contains a statement that any United States person who holds the obligation will be subject to limits under the United States income tax laws. Free h&r block efile   Documentation is not required for interest on bearer obligations to qualify as portfolio interest. Free h&r block efile In some cases, however, you may need documentation for purposes of Form 1099 reporting and backup withholding. Free h&r block efile Interest that does not qualify as portfolio interest. Free h&r block efile   Payments to certain persons and payments of contingent interest do not qualify as portfolio interest. Free h&r block efile You must withhold at the statutory rate on such payments unless some other exception, such as a treaty provision, applies. Free h&r block efile Contingent interest. Free h&r block efile   Portfolio interest does not include contingent interest. Free h&r block efile Contingent interest is either of the following: Interest that is determined by reference to: Any receipts, sales, or other cash flow of the debtor or related person, Income or profits of the debtor or related person, Any change in value of any property of the debtor or a related person, or Any dividend, partnership distributions, or similar payments made by the debtor or a related person. Free h&r block efile For exceptions, see Internal Revenue Code section 871(h)(4)(C). Free h&r block efile Any other type of contingent interest that is identified by the Secretary of the Treasury in regulations. Free h&r block efile Related persons. Free h&r block efile   Related persons include the following. Free h&r block efile Members of a family, including only brothers, sisters, half-brothers, half-sisters, spouse, ancestors (parents, grandparents, etc. Free h&r block efile ), and lineal descendants (children, grandchildren, etc. Free h&r block efile ). Free h&r block efile Any person who is a party to any arrangement undertaken for the purpose of avoiding the contingent interest rules. Free h&r block efile Certain corporations, partnerships, and other entities. Free h&r block efile For details, see Nondeductible Loss in chapter 2 of Publication 544. Free h&r block efile Exception for existing debt. Free h&r block efile   Contingent interest does not include interest paid or accrued on any debt with a fixed term that was issued: On or before April 7, 1993, or After April 7, 1993, pursuant to a written binding contract in effect on that date and at all times thereafter before that debt was issued. Free h&r block efile Dividend Income The following dividend income is exempt from the 30% tax. Free h&r block efile Certain dividends paid by foreign corporations. Free h&r block efile   There is no 30% tax on U. Free h&r block efile S. Free h&r block efile source dividends you receive from a foreign corporation. Free h&r block efile See Second exception under Dividends in chapter 2 for how to figure the amount of U. Free h&r block efile S. Free h&r block efile source dividends. Free h&r block efile Certain interest-related dividends. Free h&r block efile   There is no 30% tax on interest-related dividends from sources within the United States that you receive from a mutual fund or other regulated investment company in 2013. Free h&r block efile The mutual fund will designate in writing which dividends are interest-related dividends. Free h&r block efile Certain short-term capital gain dividends. Free h&r block efile   There may not be any 30% tax on certain short-term capital gain dividends from sources within the United States that you receive from a mutual fund or other regulated investment company. Free h&r block efile The mutual fund will designate in writing which dividends are short-term capital gain dividends. Free h&r block efile This tax relief will not apply to you if you are present in the United States for 183 days or more during your tax year. Free h&r block efile Services Performed for Foreign Employer If you were paid by a foreign employer, your U. Free h&r block efile S. Free h&r block efile source income may be exempt from U. Free h&r block efile S. Free h&r block efile tax, but only if you meet one of the situations discussed next. Free h&r block efile Employees of foreign persons, organizations, or offices. Free h&r block efile   Income for personal services performed in the United States as a nonresident alien is not considered to be from U. Free h&r block efile S. Free h&r block efile sources and is tax exempt if you meet all three of the following conditions. Free h&r block efile You perform personal services as an employee of or under a contract with a nonresident alien individual, foreign partnership, or foreign corporation, not engaged in a trade or business in the United States; or you work for an office or place of business maintained in a foreign country or possession of the United States by a U. Free h&r block efile S. Free h&r block efile corporation, a U. Free h&r block efile S. Free h&r block efile partnership, or a U. Free h&r block efile S. Free h&r block efile citizen or resident. Free h&r block efile You perform these services while you are a nonresident alien temporarily present in the United States for a period or periods of not more than a total of 90 days during the tax year. Free h&r block efile Your pay for these services is not more than $3,000. Free h&r block efile If you do not meet all three conditions, your income from personal services performed in the United States is U. Free h&r block efile S. Free h&r block efile source income and is taxed according to the rules in chapter 4. Free h&r block efile   If your pay for these services is more than $3,000, the entire amount is income from a trade or business within the United States. Free h&r block efile To find if your pay is more than $3,000, do not include any amounts you get from your employer for advances or reimbursements of business travel expenses, if you were required to and did account to your employer for those expenses. Free h&r block efile If the advances or reimbursements are more than your expenses, include the excess in your pay for these services. Free h&r block efile   A day means a calendar day during any part of which you are physically present in the United States. Free h&r block efile Example 1. Free h&r block efile During 2013, Henry Smythe, a nonresident alien from a nontreaty country, worked for an overseas office of a U. Free h&r block efile S. Free h&r block efile partnership. Free h&r block efile Henry, who uses the calendar year as his tax year, was temporarily present in the United States for 60 days during 2013 performing personal services for the overseas office of the partnership. Free h&r block efile That office paid him a total gross salary of $2,800 for those services. Free h&r block efile During 2013, he was not engaged in a trade or business in the United States. Free h&r block efile The salary is not considered U. Free h&r block efile S. Free h&r block efile source income and is exempt from U. Free h&r block efile S. Free h&r block efile tax. Free h&r block efile Example 2. Free h&r block efile The facts are the same as in Example 1, except that Henry's total gross salary for the services performed in the United States during 2013 was $4,500. Free h&r block efile He received $2,875 in 2013, and $1,625 in 2014. Free h&r block efile During 2013, he was engaged in a trade or business in the United States because the compensation for his personal services in the United States was more than $3,000. Free h&r block efile Henry's salary is U. Free h&r block efile S. Free h&r block efile source income and is taxed under the rules in chapter 4. Free h&r block efile Crew members. Free h&r block efile   Compensation for services performed by a nonresident alien in connection with the individual's temporary presence in the United States as a regular crew member of a foreign vessel (for example, a boat or ship) engaged in transportation between the United States and a foreign country or U. Free h&r block efile S. Free h&r block efile possession is not U. Free h&r block efile S. Free h&r block efile source income and is exempt from U. Free h&r block efile S. Free h&r block efile tax. Free h&r block efile This exemption does not apply to compensation for services performed on foreign aircraft. Free h&r block efile Students and exchange visitors. Free h&r block efile   Nonresident alien students and exchange visitors present in the United States under “F,” “J,” or “Q” visas can exclude from gross income pay received from a foreign employer. Free h&r block efile   This group includes bona fide students, scholars, trainees, teachers, professors, research assistants, specialists, or leaders in a field of specialized knowledge or skill, or persons of similar description. Free h&r block efile It also includes the alien's spouse and minor children if they come with the alien or come later to join the alien. Free h&r block efile   A nonresident alien temporarily present in the United States under a “J” visa includes an alien individual entering the United States as an exchange visitor under the Mutual Educational and Cultural Exchange Act of 1961. Free h&r block efile Foreign employer. Free h&r block efile   A foreign employer is: A nonresident alien individual, foreign partnership, or foreign corporation, or An office or place of business maintained in a foreign country or in a U. Free h&r block efile S. Free h&r block efile possession by a U. Free h&r block efile S. Free h&r block efile corporation, a U. Free h&r block efile S. Free h&r block efile partnership, or an individual who is a U. Free h&r block efile S. Free h&r block efile citizen or resident. Free h&r block efile   The term “foreign employer” does not include a foreign government. Free h&r block efile Pay from a foreign government that is exempt from U. Free h&r block efile S. Free h&r block efile income tax is discussed in chapter 10. Free h&r block efile Income from certain annuities. Free h&r block efile   Do not include in income any annuity received under a qualified annuity plan or from a qualified trust exempt from U. Free h&r block efile S. Free h&r block efile income tax if you meet both of the following conditions. Free h&r block efile You receive the annuity only because: You performed personal services outside the United States while you were a nonresident alien, or You performed personal services inside the United States while you were a nonresident alien and you met the three conditions, described earlier, under Employees of foreign persons, organizations, or offices . Free h&r block efile At the time the first amount is paid as an annuity under the plan (or by the trust), 90% or more of the employees for whom contributions or benefits are provided under the annuity plan (or under the plan of which the trust is a part) are U. Free h&r block efile S. Free h&r block efile citizens or residents. Free h&r block efile   If the annuity qualifies under condition (1) but not condition (2) above, you do not have to include the amount in income if: You are a resident of a country that gives a substantially equal exclusion to U. Free h&r block efile S. Free h&r block efile citizens and residents, or You are a resident of a beneficiary developing country under Title V of the Trade Act of 1974. Free h&r block efile   If you are not sure whether the annuity is from a qualified annuity plan or qualified trust, ask the person who made the payment. Free h&r block efile Income affected by treaties. Free h&r block efile   Income of any kind that is exempt from U. Free h&r block efile S. Free h&r block efile tax under a treaty to which the United States is a party is excluded from your gross income. Free h&r block efile Income on which the tax is only limited by treaty, however, is included in gross income. Free h&r block efile See chapter 9. Free h&r block efile Gambling Winnings From Dog or Horse Racing You can exclude from your gross income winnings from legal wagers initiated outside the United States in a parimutuel pool with respect to a live horse or dog race in the United States. Free h&r block efile Gain From the Sale of Your Main Home If you sold your main home, you may be able to exclude up to $250,000 of the gain on the sale of your home. Free h&r block efile If you are married and file a joint return, you may be able to exclude up to $500,000. Free h&r block efile For information on the requirements for this exclusion, see Publication 523. Free h&r block efile This exclusion does not apply to nonresident aliens who are subject to the expatriation tax rules discussed in chapter 4. Free h&r block efile Scholarships and Fellowship Grants If you are a candidate for a degree, you may be able to exclude from your income part or all of the amounts you receive as a qualified scholarship. Free h&r block efile The rules discussed here apply to both resident and nonresident aliens. Free h&r block efile If a nonresident alien receives a grant that is not from U. Free h&r block efile S. Free h&r block efile sources, it is not subject to U. Free h&r block efile S. Free h&r block efile tax. Free h&r block efile See Scholarships, Grants, Prizes, and Awards in chapter 2 to determine whether your grant is from U. Free h&r block efile S. Free h&r block efile sources. Free h&r block efile A scholarship or fellowship is excludable from income only if: You are a candidate for a degree at an eligible educational institution, and You use the scholarship or fellowship to pay qualified education expenses. Free h&r block efile Candidate for a degree. Free h&r block efile   You are a candidate for a degree if you: Attend a primary or secondary school or are pursuing a degree at a college or university, or Attend an accredited educational institution that is authorized to provide: A program that is acceptable for full credit toward a bachelor's or higher degree, or A program of training to prepare students for gainful employment in a recognized occupation. Free h&r block efile Eligible educational institution. Free h&r block efile   An eligible educational institution is one that maintains a regular faculty and curriculum and normally has a regularly enrolled body of students in attendance at the place where it carries on its educational activities. Free h&r block efile Qualified education expenses. Free h&r block efile   These are expenses for: Tuition and fees required to enroll at or attend an eligible educational institution, and Course-related expenses, such as fees, books, supplies, and equipment that are required for the courses at the eligible educational institution. Free h&r block efile These items must be required of all students in your course of instruction. Free h&r block efile However, in order for these to be qualified education expenses, the terms of the scholarship or fellowship cannot require that it be used for other purposes, such as room and board, or specify that it cannot be used for tuition or course-related expenses. Free h&r block efile Expenses that do not qualify. Free h&r block efile   Qualified education expenses do not include the cost of: Room and board, Travel, Research, Clerical help, or Equipment and other expenses that are not required for enrollment in or attendance at an eligible educational institution. Free h&r block efile This is true even if the fee must be paid to the institution as a condition of enrollment or attendance. Free h&r block efile Scholarship or fellowship amounts used to pay these costs are taxable. Free h&r block efile Amounts used to pay expenses that do not qualify. Free h&r block efile   A scholarship amount used to pay any expense that does not qualify is taxable, even if the expense is a fee that must be paid to the institution as a condition of enrollment or attendance. Free h&r block efile Payment for services. Free h&r block efile   You cannot exclude from income the portion of any scholarship, fellowship, or tuition reduction that represents payment for past, present, or future teaching, research, or other services. Free h&r block efile This is true even if all candidates for a degree are required to perform the services as a condition for receiving the degree. Free h&r block efile Example. Free h&r block efile On January 7, Maria Gomez is notified of a scholarship of $2,500 for the spring semester. Free h&r block efile As a condition for receiving the scholarship, Maria must serve as a part-time teaching assistant. Free h&r block efile Of the $2,500 scholarship, $1,000 represents payment for her services. Free h&r block efile Assuming that Maria meets all other conditions, she can exclude no more than $1,500 from income as a qualified scholarship. Free h&r block efile Prev  Up  Next   Home   More Online Publications
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The Free H&r Block Efile

Free h&r block efile 22. Free h&r block efile   Taxes Table of Contents IntroductionIndian tribal government. Free h&r block efile 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. Free h&r block efile Real Estate TaxesReal estate taxes for prior years. Free h&r block efile Examples. Free h&r block efile Form 1099-S. Free h&r block efile 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). Free h&r block efile It also explains which taxes you can deduct on other schedules or forms and which taxes you cannot deduct. Free h&r block efile This chapter covers the following topics. Free h&r block efile Income taxes (federal, state, local, and foreign). Free h&r block efile General sales taxes (state and local). Free h&r block efile Real estate taxes (state, local, and foreign). Free h&r block efile Personal property taxes (state and local). Free h&r block efile Taxes and fees you cannot deduct. Free h&r block efile Use Table 22-1 as a guide to determine which taxes you can deduct. Free h&r block efile The end of the chapter contains a section that explains which forms you use to deduct different types of taxes. Free h&r block efile Business taxes. Free h&r block efile   You can deduct certain taxes only if they are ordinary and necessary expenses of your trade or business or of producing income. Free h&r block efile For information on these taxes, see Publication 535, Business Expenses. Free h&r block efile State or local taxes. Free h&r block efile   These are taxes imposed by the 50 states, U. Free h&r block efile S. Free h&r block efile possessions, or any of their political subdivisions (such as a county or city), or by the District of Columbia. Free h&r block efile Indian tribal government. Free h&r block efile   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. Free h&r block efile 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. Free h&r block efile General sales taxes. Free h&r block efile   These are taxes imposed at one rate on retail sales of a broad range of classes of items. Free h&r block efile Foreign taxes. Free h&r block efile   These are taxes imposed by a foreign country or any of its political subdivisions. Free h&r block efile 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. Free h&r block efile The tax must be imposed on you. Free h&r block efile You must pay the tax during your tax year. Free h&r block efile The tax must be imposed on you. Free h&r block efile   In general, you can deduct only taxes imposed on you. Free h&r block efile   Generally, you can deduct property taxes only if you are an owner of the property. Free h&r block efile 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. Free h&r block efile You must pay the tax during your tax year. Free h&r block efile   If you are a cash basis taxpayer, you can deduct only those taxes you actually paid during your tax year. Free h&r block efile 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. Free h&r block efile 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. Free h&r block efile 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). Free h&r block efile See Publication 538, Accounting Periods and Methods, for details. Free h&r block efile    If you use an accrual method of accounting, see Publication 538 for more information. Free h&r block efile Income Taxes This section discusses the deductibility of state and local income taxes (including employee contributions to state benefit funds) and foreign income taxes. Free h&r block efile State and Local Income Taxes You can deduct state and local income taxes. Free h&r block efile However, you can elect to deduct state and local general sales taxes instead of state and local income taxes. Free h&r block efile See General Sales Taxes , later. Free h&r block efile Exception. Free h&r block efile    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. Free h&r block efile 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. Free h&r block efile What To Deduct Your deduction may be for withheld taxes, estimated tax payments, or other tax payments as follows. Free h&r block efile Withheld taxes. Free h&r block efile   You can deduct state and local income taxes withheld from your salary in the year they are withheld. Free h&r block efile Your Form(s) W-2 will show these amounts. Free h&r block efile Forms W-2G, 1099-G, 1099-R, and 1099-MISC may also show state and local income taxes withheld. Free h&r block efile Estimated tax payments. Free h&r block efile   You can deduct estimated tax payments you made during the year to a state or local government. Free h&r block efile However, you must have a reasonable basis for making the estimated tax payments. Free h&r block efile Any estimated state or local tax payments that are not made in good faith at the time of payment are not deductible. Free h&r block efile For example, you made an estimated state income tax payment. Free h&r block efile However, the estimate of your state tax liability shows that you will get a refund of the full amount of your estimated payment. Free h&r block efile You had no reasonable basis to believe you had any additional liability for state income taxes and you cannot deduct the estimated tax payment. Free h&r block efile Refund applied to taxes. Free h&r block efile   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. Free h&r block efile    Do not reduce your deduction by either of the following items. Free h&r block efile Any state or local income tax refund (or credit) you expect to receive for 2013. Free h&r block efile Any refund of (or credit for) prior-year state and local income taxes you actually received in 2013. Free h&r block efile   However, part or all of this refund (or credit) may be taxable. Free h&r block efile See Refund (or credit) of state or local income taxes , later. Free h&r block efile Separate federal returns. Free h&r block efile   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. Free h&r block efile Joint state and local returns. Free h&r block efile   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. Free h&r block efile 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. Free h&r block efile However, you cannot deduct more than the amount you actually paid during the year. Free h&r block efile 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. Free h&r block efile If so, you and your spouse can deduct on your separate federal returns the amount you each actually paid. Free h&r block efile Joint federal return. Free h&r block efile   If you file a joint federal return, you can deduct the total of the state and local income taxes both of you paid. Free h&r block efile Contributions to state benefit funds. Free h&r block efile    As an employee, you can deduct mandatory contributions to state benefit funds withheld from your wages that provide protection against loss of wages. Free h&r block efile For example, certain states require employees to make contributions to state funds providing disability or unemployment insurance benefits. Free h&r block efile Mandatory payments made to the following state benefit funds are deductible as state income taxes on Schedule A (Form 1040), line 5. Free h&r block efile Alaska Unemployment Compensation Fund. Free h&r block efile California Nonoccupational Disability Benefit Fund. Free h&r block efile New Jersey Nonoccupational Disability Benefit Fund. Free h&r block efile New Jersey Unemployment Compensation Fund. Free h&r block efile New York Nonoccupational Disability Benefit Fund. Free h&r block efile Pennsylvania Unemployment Compensation Fund. Free h&r block efile Rhode Island Temporary Disability Benefit Fund. Free h&r block efile Washington State Supplemental Workmen's Compensation Fund. Free h&r block efile    Employee contributions to private or voluntary disability plans are not deductible. Free h&r block efile Refund (or credit) of state or local income taxes. Free h&r block efile   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. Free h&r block efile 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. Free h&r block efile If you did not itemize your deductions in the previous year, do not include the refund in income. Free h&r block efile 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. Free h&r block efile For a discussion of how much to include, see Recoveries in chapter 12. Free h&r block efile 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. Free h&r block efile S. Free h&r block efile possession. Free h&r block efile However, you cannot take a deduction or credit for foreign income taxes paid on income that is exempt from U. Free h&r block efile S. Free h&r block efile tax under the foreign earned income exclusion or the foreign housing exclusion. Free h&r block efile For information on these exclusions, see Publication 54, Tax Guide for U. Free h&r block efile S. Free h&r block efile Citizens and Resident Aliens Abroad. Free h&r block efile For information on the foreign tax credit, see Publication 514. Free h&r block efile 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. Free h&r block efile You can use either your actual expenses or the state and local sales tax tables to figure your sales tax deduction. Free h&r block efile Actual expenses. Free h&r block efile   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. Free h&r block efile 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. Free h&r block efile 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. Free h&r block efile If you use the actual expenses method, you must have receipts to show the general sales taxes paid. Free h&r block efile Do not include sales taxes paid on items used in your trade or business. Free h&r block efile Motor vehicles. Free h&r block efile   For purposes of this section, motor vehicles include cars, motorcycles, motor homes, recreational vehicles, sport utility vehicles, trucks, vans, and off-road vehicles. Free h&r block efile This also includes sales taxes on a leased motor vehicle, but not on vehicles used in your trade or business. Free h&r block efile Optional sales tax tables. Free h&r block efile   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). Free h&r block efile You may also be able to add the state and local general sales taxes paid on certain specified items. Free h&r block efile   Your applicable table amount is based on the state where you live, your income, and the number of exemptions claimed on your tax return. Free h&r block efile Your income is your adjusted gross income plus any nontaxable items such as the following. Free h&r block efile Tax-exempt interest. Free h&r block efile Veterans' benefits. Free h&r block efile Nontaxable combat pay. Free h&r block efile Workers' compensation. Free h&r block efile Nontaxable part of social security and railroad retirement benefits. Free h&r block efile Nontaxable part of IRA, pension, or annuity distributions, excluding rollovers. Free h&r block efile Public assistance payments. Free h&r block efile 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. Free h&r block efile See the Instructions for Schedule A (Form 1040), line 5, for details. Free h&r block efile Real Estate Taxes Deductible real estate taxes are any state, local, or foreign taxes on real property levied for the general public welfare. Free h&r block efile 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. Free h&r block efile Deductible real estate taxes generally do not include taxes charged for local benefits and improvements that increase the value of the property. Free h&r block efile 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. Free h&r block efile For more information about taxes and charges that are not deductible, see Real Estate-Related Items You Cannot Deduct , later. Free h&r block efile Tenant-shareholders in a cooperative housing corporation. Free h&r block efile   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. Free h&r block efile The corporation should provide you with a statement showing your share of the taxes. Free h&r block efile For more information, see Special Rules for Cooperatives in Publication 530. Free h&r block efile Division of real estate taxes between buyers and sellers. Free h&r block efile   If you bought or sold real estate during the year, the real estate taxes must be divided between the buyer and the seller. Free h&r block efile   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. Free h&r block efile The seller is treated as paying the taxes up to, but not including, the date of sale. Free h&r block efile The buyer is treated as paying the taxes beginning with the date of sale. Free h&r block efile This applies regardless of the lien dates under local law. Free h&r block efile Generally, this information is included on the settlement statement provided at the closing. Free h&r block efile    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. Free h&r block efile This lets you deduct the part of the tax to the date of sale even though you did not actually pay it. Free h&r block efile However, you must also include the amount of that tax in the selling price of the property. Free h&r block efile The buyer must include the same amount in his or her cost of the property. Free h&r block efile   You figure your deduction for taxes on each property bought or sold during the real property tax year as follows. Free h&r block efile Worksheet 22-1. Free h&r block efile Figuring Your Real Estate Tax Deduction 1. Free h&r block efile Enter the total real estate taxes for the real property tax year   2. Free h&r block efile Enter the number of days in the real property tax year that you owned the property   3. Free h&r block efile Divide line 2 by 365 (for leap years, divide line 2 by 366) . Free h&r block efile 4. Free h&r block efile Multiply line 1 by line 3. Free h&r block efile This is your deduction. Free h&r block efile Enter it on Schedule A (Form 1040), line 6   Note. Free h&r block efile Repeat steps 1 through 4 for each property you bought or sold during the real property tax year. Free h&r block efile Your total deduction is the sum of the line 4 amounts for all of the properties. Free h&r block efile Real estate taxes for prior years. Free h&r block efile   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. Free h&r block efile Even if the buyer agrees to pay the delinquent taxes, the buyer cannot deduct them. Free h&r block efile The buyer must add them to the cost of the property. Free h&r block efile The seller can deduct these taxes paid by the buyer. Free h&r block efile However, the seller must include them in the selling price. Free h&r block efile Examples. Free h&r block efile   The following examples illustrate how real estate taxes are divided between buyer and seller. Free h&r block efile Example 1. Free h&r block efile 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. Free h&r block efile The tax on their old home, sold on May 7, was $620. Free h&r block efile The tax on their new home, bought on May 3, was $732. Free h&r block efile 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. Free h&r block efile 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. Free h&r block efile 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). Free h&r block efile They figure their deduction for taxes on their old home as follows. Free h&r block efile Worksheet 22-1. Free h&r block efile Figuring Your Real Estate Tax Deduction — Taxes on Old Home 1. Free h&r block efile Enter the total real estate taxes for the real property tax year $620 2. Free h&r block efile Enter the number of days in the real property tax year that you owned the property 126 3. Free h&r block efile Divide line 2 by 365 (for leap years, divide line 2 by 366) . Free h&r block efile 3452 4. Free h&r block efile Multiply line 1 by line 3. Free h&r block efile This is your deduction. Free h&r block efile 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. Free h&r block efile (The buyers add the $214 to their cost of the home. Free h&r block efile ) 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). Free h&r block efile They figure their deduction for taxes on their new home as follows. Free h&r block efile Worksheet 22-1. Free h&r block efile Figuring Your Real Estate Tax Deduction — Taxes on New Home 1. Free h&r block efile Enter the total real estate taxes for the real property tax year $732 2. Free h&r block efile Enter the number of days in the real property tax year that you owned the property 243 3. Free h&r block efile Divide line 2 by 365 (for leap years, divide line 2 by 366) . Free h&r block efile 6658 4. Free h&r block efile Multiply line 1 by line 3. Free h&r block efile This is your deduction. Free h&r block efile 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. Free h&r block efile (The sellers add this $245 to their selling price and deduct the $245 as a real estate tax. Free h&r block efile ) Dennis and Beth's real estate tax deduction for their old and new homes is the sum of $214 and $487, or $701. Free h&r block efile They will enter this amount on Schedule A (Form 1040), line 6. Free h&r block efile Example 2. Free h&r block efile George and Helen Brown bought a new home on May 3, 2013. Free h&r block efile Their real property tax year for the new home is the calendar year. Free h&r block efile Real estate taxes for 2012 were assessed in their state on January 1, 2013. Free h&r block efile The taxes became due on May 31, 2013, and October 31, 2013. Free h&r block efile The Browns agreed to pay all taxes due after the date of purchase. Free h&r block efile Real estate taxes for 2012 were $680. Free h&r block efile They paid $340 on May 31, 2013, and $340 on October 31, 2013. Free h&r block efile These taxes were for the 2012 real property tax year. Free h&r block efile The Browns cannot deduct them since they did not own the property until 2013. Free h&r block efile Instead, they must add $680 to the cost of their new home. Free h&r block efile In January 2014, the Browns receive their 2013 property tax statement for $752, which they will pay in 2014. Free h&r block efile The Browns owned their new home during the 2013 real property tax year for 243 days (May 3 to December 31). Free h&r block efile They will figure their 2014 deduction for taxes as follows. Free h&r block efile Worksheet 22-1. Free h&r block efile Figuring Your Real Estate Tax Deduction — Taxes on New Home 1. Free h&r block efile Enter the total real estate taxes for the real property tax year $752 2. Free h&r block efile Enter the number of days in the real property tax year that you owned the property 243 3. Free h&r block efile Divide line 2 by 365 (for leap years, divide line 2 by 366) . Free h&r block efile 6658 4. Free h&r block efile Multiply line 1 by line 3. Free h&r block efile This is your deduction. Free h&r block efile 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. Free h&r block efile 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. Free h&r block efile This is the sum of the $680 for 2012 and the $251 for the 122 days the seller owned the home in 2013. Free h&r block efile The seller must also include the $931 in the selling price when he or she figures the gain or loss on the sale. Free h&r block efile The seller should contact the Browns in January 2014 to find out how much real estate tax is due for 2013. Free h&r block efile Form 1099-S. Free h&r block efile   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. Free h&r block efile 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. Free h&r block efile 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. Free h&r block efile   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. Free h&r block efile 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. Free h&r block efile See Refund (or rebate) , later. Free h&r block efile Taxes placed in escrow. Free h&r block efile   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. Free h&r block efile You can deduct only the real estate tax that the third party actually paid to the taxing authority. Free h&r block efile 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. Free h&r block efile Tenants by the entirety. Free h&r block efile   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. Free h&r block efile Divorced individuals. Free h&r block efile   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. Free h&r block efile See Taxes and insurance in chapter 18 for more information. Free h&r block efile Ministers' and military housing allowances. Free h&r block efile   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. Free h&r block efile Refund (or rebate). Free h&r block efile   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. Free h&r block efile 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. Free h&r block efile However, the amount you include in income is limited to the amount of the deduction that reduced your tax in the earlier year. Free h&r block efile For more information, see Recoveries in chapter 12. Free h&r block efile Table 22-1. Free h&r block efile 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. Free h&r block efile 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 ). Free h&r block efile     Fines and penalties. Free h&r block efile Income Taxes State and local income taxes. Free h&r block efile Federal income taxes. Free h&r block efile   Foreign income taxes. Free h&r block efile     Employee contributions to state funds listed under Contributions to state benefit funds . Free h&r block efile Employee contributions to private or voluntary disability plans. Free h&r block efile     State and local general sales taxes if you choose to deduct state and local income taxes. Free h&r block efile General Sales Taxes State and local general sales taxes, including compensating use taxes. Free h&r block efile State and local income taxes if you choose to deduct state and local general sales taxes. Free h&r block efile Other Taxes Taxes that are expenses of your trade or business. Free h&r block efile Federal excise taxes, such as tax on gasoline, that are not expenses of your trade or business or of producing income. Free h&r block efile   Taxes on property producing rent or royalty income. Free h&r block efile Per capita taxes. Free h&r block efile   Occupational taxes. Free h&r block efile See chapter 28. Free h&r block efile     One-half of self-employment tax paid. Free h&r block efile   Personal Property Taxes State and local personal property taxes. Free h&r block efile Customs duties that are not expenses of your trade or business or of producing income. Free h&r block efile Real Estate Taxes State and local real estate taxes. Free h&r block efile Real estate taxes that are treated as imposed on someone else (see Division of real estate taxes between buyers and sellers ). Free h&r block efile   Foreign real estate taxes. Free h&r block efile Taxes for local benefits (with exceptions). Free h&r block efile See Real Estate-Related Items You Cannot Deduct . Free h&r block efile   Tenant's share of real estate taxes paid by  cooperative housing corporation. Free h&r block efile Trash and garbage pickup fees (with exceptions). Free h&r block efile See Real Estate-Related Items You Cannot Deduct . Free h&r block efile     Rent increase due to higher real estate taxes. Free h&r block efile     Homeowners' association charges. Free h&r block efile Real Estate-Related Items You Cannot Deduct Payments for the following items generally are not deductible as real estate taxes. Free h&r block efile Taxes for local benefits. Free h&r block efile Itemized charges for services (such as trash and garbage pickup fees). Free h&r block efile Transfer taxes (or stamp taxes). Free h&r block efile Rent increases due to higher real estate taxes. Free h&r block efile Homeowners' association charges. Free h&r block efile Taxes for local benefits. Free h&r block efile   Deductible real estate taxes generally do not include taxes charged for local benefits and improvements tending to increase the value of your property. Free h&r block efile These include assessments for streets, sidewalks, water mains, sewer lines, public parking facilities, and similar improvements. Free h&r block efile You should increase the basis of your property by the amount of the assessment. Free h&r block efile   Local benefit taxes are deductible only if they are for maintenance, repair, or interest charges related to those benefits. Free h&r block efile 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. Free h&r block efile If you cannot determine what part of the tax is for maintenance, repair, or interest, none of it is deductible. Free h&r block efile    Taxes for local benefits may be included in your real estate tax bill. Free h&r block efile If your taxing authority (or mortgage lender) does not furnish you a copy of your real estate tax bill, ask for it. Free h&r block efile You should use the rules above to determine if the local benefit tax is deductible. Free h&r block efile Contact the taxing authority if you need additional information about a specific charge on your real estate tax bill. Free h&r block efile Itemized charges for services. Free h&r block efile    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. Free h&r block efile 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). Free h&r block efile    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. Free h&r block efile If your taxing authority (or mortgage lender) does not furnish you a copy of your real estate tax bill, ask for it. Free h&r block efile Exception. Free h&r block efile   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. Free h&r block efile Transfer taxes (or stamp taxes). Free h&r block efile   Transfer taxes and similar taxes and charges on the sale of a personal home are not deductible. Free h&r block efile If they are paid by the seller, they are expenses of the sale and reduce the amount realized on the sale. Free h&r block efile If paid by the buyer, they are included in the cost basis of the property. Free h&r block efile Rent increase due to higher real estate taxes. Free h&r block efile   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. Free h&r block efile Homeowners' association charges. Free h&r block efile   These charges are not deductible because they are imposed by the homeowners' association, rather than the state or local government. Free h&r block efile 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. Free h&r block efile A tax that meets the above requirements can be considered charged on personal property even if it is for the exercise of a privilege. Free h&r block efile 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. Free h&r block efile If the tax is partly based on value and partly based on other criteria, it may qualify in part. Free h&r block efile Example. Free h&r block efile Your state charges a yearly motor vehicle registration tax of 1% of value plus 50 cents per hundredweight. Free h&r block efile You paid $32 based on the value ($1,500) and weight (3,400 lbs. Free h&r block efile ) of your car. Free h&r block efile You can deduct $15 (1% × $1,500) as a personal property tax because it is based on the value. Free h&r block efile The remaining $17 ($. Free h&r block efile 50 × 34), based on the weight, is not deductible. Free h&r block efile 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. Free h&r block efile Other taxes and fees, such as federal income taxes, are not deductible because the tax law specifically prohibits a deduction for them. Free h&r block efile See Table 22-1. Free h&r block efile Taxes and fees that are generally not deductible include the following items. Free h&r block efile Employment taxes. Free h&r block efile This includes social security, Medicare, and railroad retirement taxes withheld from your pay. Free h&r block efile However, one-half of self-employment tax you pay is deductible. Free h&r block efile 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. Free h&r block efile For more information, see chapters 21 and 32. Free h&r block efile Estate, inheritance, legacy, or succession taxes. Free h&r block efile 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. Free h&r block efile In that case, deduct the estate tax as a miscellaneous deduction that is not subject to the 2%-of-adjusted-gross-income limit. Free h&r block efile For more information, see Publication 559, Survivors, Executors, and Administrators. Free h&r block efile Federal income taxes. Free h&r block efile This includes income taxes withheld from your pay. Free h&r block efile Fines and penalties. Free h&r block efile You cannot deduct fines and penalties paid to a government for violation of any law, including related amounts forfeited as collateral deposits. Free h&r block efile Gift taxes. Free h&r block efile License fees. Free h&r block efile You cannot deduct license fees for personal purposes (such as marriage, driver's, and dog license fees). Free h&r block efile Per capita taxes. Free h&r block efile You cannot deduct state or local per capita taxes. Free h&r block efile 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. Free h&r block efile For other nondeductible items, see Real Estate-Related Items You Cannot Deduct , earlier. Free h&r block efile Where To Deduct You deduct taxes on the following schedules. Free h&r block efile State and local income taxes. Free h&r block efile    These taxes are deducted on Schedule A (Form 1040), line 5, even if your only source of income is from business, rents, or royalties. Free h&r block efile Check box a on line 5. Free h&r block efile General sales taxes. Free h&r block efile   Sales taxes are deducted on Schedule A (Form 1040), line 5. Free h&r block efile You must check box b on line 5. Free h&r block efile If you elect to deduct sales taxes, you cannot deduct state and local income taxes on Schedule A (Form 1040), line 5, box a. Free h&r block efile Foreign income taxes. Free h&r block efile   Generally, income taxes you pay to a foreign country or U. Free h&r block efile S. Free h&r block efile possession can be claimed as an itemized deduction on Schedule A (Form 1040), line 8, or as a credit against your U. Free h&r block efile S. Free h&r block efile income tax on Form 1040, line 47. Free h&r block efile To claim the credit, you may have to complete and attach Form 1116. Free h&r block efile For more information, see chapter 37, the Form 1040 instructions, or Publication 514. Free h&r block efile Real estate taxes and personal property taxes. Free h&r block efile    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). Free h&r block efile Taxes on property that produces rent or royalty income are deducted on Schedule E (Form 1040). Free h&r block efile Self-employment tax. Free h&r block efile    Deduct one-half of your self-employment tax on Form 1040, line 27. Free h&r block efile Other taxes. Free h&r block efile    All other deductible taxes are deducted on Schedule A (Form 1040), line 8. Free h&r block efile Prev  Up  Next   Home   More Online Publications