Submitted By: Andrew
Answered: November 18, 2014 8:30 am

Are the state and local taxes that appear on my utility bills (including my phone bill) deductible?

Not really. Most of the taxes you refer to (as well as taxes on airline tickets, gasoline at the pump, and cable and Internet access) are excise taxes, which are not deductible as itemized deductions on personal income tax returns. However, those who claim a home office deduction and figure it using actual expenses take many of these taxes into account.

advertisement
Tax Glossary

Accelerated depreciation

Depreciation methods that allow faster write-offs than straight-line rates in the earlier periods of the useful life of an asset. For example, in the first few years of recovery, MACRS allows a 200% double declining balance write-off, twice the straight-line rate.

More terms