Can income tax paid be included as an itemized deduction?
Yes, but only for certain types of income taxes. Taxes that can be included as an itemized deduction include:
1) Estimated taxes paid
2) Withheld taxes from the individuals W-2
3) Assessments paid during the year for the prior year’s taxes
4) If tax refunds were deducted in the prior year, they are considered an item of gross income and will not be deductible.
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