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How to Use Deductions on a Tax Return

What taxes did you pay?

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Art Auerbach
Tax Director, Goodman & Company, LLP
http://www.goodmanco.com/  

Serving clients since 1932, Goodman & Company brings 75 years of knowledge and experience to the demands of today's ever-changing business environment. Throughout the past 75 years, we've never strayed from our mission-to provide each client with personal, high-quality service using the most up-to-date technology and resources.

What taxes did you pay?

Basic information to prepare an individual income tax return, Form 1040 and the basic schedules. This video is designed for those individuals who want to undertake the preparation of their tax return. There are tips and pointers for those who have attempted this feat in prior years.

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Taxes

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Tax

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Income

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Deduction

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W2

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Government

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Host: What taxes did you pay?

Arthur Auerbach: Taxes are deduction on Schedule A. You get a choice of deducting your State and local income tax. So if you recall, when we talked about or if watched the module on W2, there is a box on the bottom of the W2 state taxes withheld or any estimated taxes, payments that you made to the state, all of that's deductible. Supposing, you live in a state that doesn't have the state income tax, you can deduct your sales tax that you pay instead. Now you can go to the IRS table to determine sales tax which is based on your income or you can keep a closet full of receipts, add them all up every time you paid sales tax and put that number in on your 1040 for the sales tax deduction. You get the deduction on Schedule A for your Real Estate taxes for your home, for your personal asset and then there is a thing called personal property taxes. So if you have come from a jurisdiction that pays where you pay your personal property tax let's say for automobiles or boats or Aeroplanes, then that can be deduction too on Schedule A.

Any Federal taxes or Federal excise taxes are generally not deductible.

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