How to Deduct Taxes?
Taxes can be deducted. Knowing where and how
to deduct taxes helps taxpayers file their tax returns
correctly. Below is how to deduct taxes on your tax return.
How to deduct state and local income taxes?
To deduct the state and local income taxes,
use Schedule A called Itemized Deductions of the IRS tax form
If you are deducting income taxes then check
the box 5a whereas if you are deducting general sales taxes,
check box 5b.
How to deduct foreign income taxes?
To deduct foreign income taxes, use also
Schedule A of the form 1040. Under taxes you paid and other
taxes, you can deduct the foreign income taxes paid or you can
claim it as credit against your US income tax on form 1040.
Taxpayers wanting to claim the credit for
foreign income taxes may have to complete the IRS tax form 1116
called foreign tax credit.