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Schedule A - Taxes Paid and Used as Itemized Deductions

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What types of taxes qualify to be deducted as itemized deductions? What sort of taxes don't qualify for the deduction? Would a vehicle registration fee qualify as a deductible tax? Why or why not?

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State and local taxes paid in the previous year qualify to be used as itemized deductions, which are then listed on Schedule A of the taxpayer's Form 1040. Other taxes that can be used include sales tax paid on items, real estate taxes and personal property taxes. Foreign tax paid can also be used on Schedule A.

A vehicle registration fee does not qualify as a deductible tax because it is not a ...

Solution Summary

This solution explains the four examples taxes that are allowed on Schedule A as itemized deductions with justifications.

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Completing Form 1040 using Schedule A

John R. Lane (SSN 123-44-6666) lives at 1010 Ipsen Street, Yorba Linda, California 90102. John, a single taxpayer, age 66, provided 100% of his cousin's support. The cousin lives in Arizona. He wants to take advantage of the presidential election campaign check-off. John is an accountant. Other relevant information includes

Salary $20,000
Taxable pension 31,000
Interest income 300
IRA deduction 3,000
Itemized deductions (from Schedule A) 6,000
Withholding 7,000

Assume that Schedule A, if necessary, has already been completed. Complete Form 1040.

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