The occupational tax is deducted as job-related expenses (I'm assuming you are an employee).
Job-related
expenses are located in:
- Federal Taxes
- Deductions & Credits (you may have to select See all
tax breaks)
- Employment Expenses
- Job-Related Expenses
Note: Per IRS Pub. 17 "You can deduct an occupational tax charged at a flat rate by a locality for the privilege of working or conducting a business in the locality. If
you are an employee, you can claim occupational
taxes only as a miscellaneous deduction
subject to the 2% limit; you can't claim them as
a deduction for taxes elsewhere on your return."
