Artículo Limitation on deduction for state and local taxes. Limitation on deduction for state and local taxes

id="en_US_2025_publink10009426"> Limitation on deduction for state and local taxes. The deduction for state and local taxes is limited to $40,000 ($20,000 if married filing separately). The overall limit is reduced if your modified adjusted gross income is more than $500,000 ($250,000 if married filing separately) but will not be reduced below $10,000 ($5,000 if married filing separately). State and local taxes are the taxes that you include on Schedule A (Form 1040), lines 5a, 5b, and 5c. Include taxes imposed by a U.S. territory with your state and local taxes on Schedule A (Form 1040), lines 5a, 5b, and 5c. However, don't include any U.S. territory taxes you paid that are allocable to excluded income. . You may want to take a credit for U.S. territory tax instead of a deduction. See the instructions for Schedule 3 (Form 1040), line 1, for details. . General sales taxes. Sales taxes are deducted on Schedule A (Form 1040), line 5a. You must check the box on line 5a. If you elect to deduct sales taxes, you can’t deduct state and local income taxes on Schedule A (Form 1040), line 5a. Foreign income taxes. Generally, income taxes you pay to a foreign country or U.S. territory can be claimed as an itemized deduction on Schedule A (Form 1040), line 6, or as a credit against your U.S. income tax on Schedule 3 (Form 1040), line 1. To claim the credit, you may have to complete and attach Form 1116. For more information, see the Instructions for Form 1040 or Pub. 514. Real estate taxes and personal property taxes. Real estate and personal property taxes are deducted on Schedule A (Form 1040), lines 5b and 5c, respectively, unless they are paid on property used in your business, in which case they are deducted on Schedule C (Form 1040) or Schedule F (Form 1040). Taxes on property that produces rent or royalty income are deducted on Schedule E (Form 1040). Self-employment tax. Deduct one-half of your self-employment tax on Schedule 1 (Form 1040), line 15. Other taxes. All other deductible taxes are deducted on Schedule A (Form 1040), line 6. 12. Other Itemized Deductions What’s New Standard mileage rate. The 2025 rate for business use of a vehicle is 70 cents a mile. Reminders No miscellaneous itemized deductions allowed. You can no longer claim any miscellaneous itemized deductions. Miscellaneous itemized deductions are those deductions that would have been subject to the 2%-of-adjusted-gross-income (AGI) limitation. See Miscellaneous Itemized Deductions , later. Fines and penalties. Rules regarding deducting fines and penalties have changed. See Fines and Penalties , later. Introduction This chapter explains that you can no longer claim any miscellaneous itemized deductions, unless you fall into one of the qualified categories of employment claiming a deduction relating to unreimbursed employee expenses. Miscellaneous itemized deductions are those deductions that would have been subject to the 2%-of-AGI limitation. You can still claim certain expenses as itemized deductions on Schedule A (Form 1040) or Schedule A (Form 1040-NR), or as an adjustment to income on Form 1040 or 1040-SR. This chapter covers the following topics. Miscellaneous itemized deductions. Expenses you can’t deduct. Expenses you can deduct. How to report your deductions. . You must keep records to verify your deductions. You should keep receipts, canceled checks, substitute checks, financial account statements, and other documentary evidence. For more information on recordkeeping, see What Records Should I Keep? in chapter 1. . Useful Items You may want to see: Publication 463 Travel, Gift, and Car Expenses 525 Taxable and Nontaxable Income 529 Miscellaneous Deductions