Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Tax Deductions and other Taxes topics.
If you itemized your deductions on your 2006 tax return, you may deduct various tax payments you made throughout the year. Use Schedule A to report the following applicable tax payments:
For state and local real property taxes paid, it is important to note that you must have an ownership interest in the property on which the taxes apply. Having ownership interest in the property is the only way you can legally claim the tax deduction. For instance, if your spouse has title to the property (ownership interest), and you pay the state and local real property taxes for him or her, you cannot claim the deduction if you two file separate tax returns. If, however, you file your tax return jointly, you can claim the tax payment deduction.
Arriving at the total amount of taxes you paid regarding the state, local, and foreign income taxes is more complicated than the two taxes mentioned above. Payments you need to consider when arriving at this figure include: