Which Taxes Are Deductible?
Taxpayers can deduct certain taxes if they itemize their deductions. To be deductible, the tax must have been imposed on the taxpayer and paid by the taxpayer during the current tax year. Taxes that are deductible include:
Taxpayers may not realize real estate taxes paid on Form 1098, Mortgage Interest Statement, may include nondeductible amounts. Use the interview techniques with taxpayers to determine if nondeductible amounts such as sanitation pickup and water fees are included in their Form 1098. These items should not be included on Schedule A.