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Deducting Taxes Already Paid

Deducting Taxes Already Paid

There Are How Many Taxes in the US Tax Code??

 97… There are 97 taxes in the US tax code, but there are only four types of deductible nonbusiness taxes.

 Thankfully, the days of arbitrary taxes mandated by rulers and kings are long gone. However, that does not mean we “commoners” are free from the proverbial yolk, unburdened by the reputed ball and chain, not getting crushed under the palpable weight of inexorable taxes. Setting all hyperbole aside, the reality and inevitability of taxes can be overwhelming in their complexity. To ensure you are paying only as much as you need, let us look at those deductible nonbusiness taxes paid to reduce your federal tax burden.

 The four types of the most common deductible nonbusiness taxes explained

 1. State, Local, (and Foreign) Income Taxes withheld from your wages are eligible to be deducted.

  2. State and Local General Sales Taxes may be deducted instead of Income Taxes.

 It is one or the other. If you elect to deduct general sales taxes, you may not deduct state and local income taxes. You can take either a deduction or a tax credit for foreign income taxes imposed on you by a foreign county or a United States possession.

 3. State, Local, and Foreign, Real Estate and Personal Property Taxes. For state or local real estate taxes to be deductible, they must be levied for public welfare and uniformly charged at a like rate against all real property in the jurisdiction.

  4. State and Local Personal Property Taxes are deductible if they are based only on the value of the personal property and assessed annually (such as a boat or car).

 Simple, Right?

 If it were, the government would not be doing their jobs, at least not in their own eyes. Complications, limitations, and stipulations are abundant in the realm of taxes, and everyone should have a professional in their corner to help make sure they are keeping as much of their hard- earned money as possible. Call our office and we will be glad to help.

 Signature

 Michael Allen, CPA

Allen & Company, PC

(770) 428-6229 (T)

(770) 425-5481 (F)

mallen@allenandcompanypc.com

www.allenandcompanypc.com

michael.robert.allen (Skype)