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

Amount recognized

The amount of gain reportable and subject to tax. On certain tax-free exchanges of property, gain is not recognized in the year it is realized.

More terms