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?© BrainMass Inc. brainmass.com October 25, 2018, 9:47 am ad1c9bdddf
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 ...
This solution explains the four examples taxes that are allowed on Schedule A as itemized deductions with justifications.
Tax Credit & Deduction
Please help me with the following questions. I am having some difficulty approaching them.
The IRS code provides for deductions and credits.
- List 5 possible deductions.
- List 3 possible tax credits.
- Compare and contrast a $10,000 adjustment, $10,000 tax credit and $10,000 of itemized deductions.