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

Legally separated

A husband and wife who are required to live apart from each other by the terms of a decree of separate maintenance. Payments under the decree are deductible by the payor and taxable to the payee as alimony.

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