What Can Be Itemized Under "Other Taxes"?
The "Other Taxes" category on Form 1040, Schedule A, allows taxpayers to deduct certain taxes paid during the tax year that are not included in the standard deduction. These are typically state and local taxes (SALT), but other specific taxes may also qualify under certain conditions.
Eligible Taxes for Itemization
- State and Local Income Taxes (SALT): You can deduct state and local income taxes paid during the year. This includes income taxes withheld by employers or paid directly to state or local governments.
- State and Local Sales Taxes: In some cases, you may choose to deduct state and local sales taxes instead of income taxes, especially if you do not itemize income tax deductions.
- State and Local Property Taxes: Property taxes paid on real estate (such as homes or land) are deductible, subject to the $10,000 cap for married filing jointly or $5,000 for married filing separately.
- Foreign Income Taxes: If you are a U.S. citizen or resident living abroad, you may be able to deduct foreign income taxes paid, though this is often claimed as a credit instead.
Important Limitations
The total deduction for state and local taxes (SALT) is capped at $10,000 ($5,000 if married filing separately) for the 2025 tax year. This cap applies to the combined total of state and local income taxes, sales taxes, and property taxes.
How to Claim These Deductions
To claim these deductions, you must file Form 1040 and itemize your deductions using Schedule A. You will need to report the amount of each type of tax paid during the year. The IRS provides worksheets in the Schedule A instructions to help calculate your allowable deduction.
Source:
Instructions for Form 1040
Publication 505
Publication 530
Publication 527
Disclaimer: Always verify details with official Federal or State Department of Revenue Forms and Instructions before filing your return.