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.

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Tax Glossary

Self-employment tax

Tax paid by self-employed persons to finance Social Security coverage. In 2007, there are two rates. A 12.4% rate applies to a taxable earnings base of $95,700 or less and a 2.9% rate applies to all net earnings.

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