Are school taxes deductible, like property tax?

[AnnaB]

Yes, school taxes that are considered real estate taxes are deductible.  Deductible real estate taxes are generally any state, local or foreign taxes on real property levied for the general public welfare.  Since school taxes are not specific to a student or whether or not you have a student in the system, then this is considered to be for the public welfare.

Local benefit taxes for improvement to property, such as assessments for streets, sidewalk and sewer lines, are not deductible.  However, you can increase your cost basis in the property by the amount of the assessment which will reduce your gain (if any) when you sell the property.  These local benefits taxes are deductible if they are for maintenance or repair, or interest charges related to those benefits.

Please refer to the link below for more detail regarding deductible taxes.

https://www.irs.gov/taxtopics/tc503.html

[Granny57]

Does it have to be a certain amount of your total income

[xmasbaby0]

@Granny57 I think you are asking whether your local school taxes are deductible as an itemized deduction on your tax return.   Itemized deductions must exceed your standard deduction in order to have any effect on your tax due or refund.   And....there is a $10,000 cap on the state and local taxes you can deduct.

STANDARD DEDUCTION

Many taxpayers are surprised because their itemized deductions are not having the same effect as they did on past tax returns.  The new higher standard deduction and the elimination of certain deductions, as well as the cap on state and local taxes have had a major impact since the new tax laws went into effect beginning with 2018 returns.

Your itemized deductions have to be more than your standard deduction before you will see a change in your tax owed or tax refund.  The deductions you enter do not necessarily count “dollar for dollar;” many of them are subject to meeting  tough thresholds—medical expenses, for example, must meet a threshold that is pretty hard to reach. (Only the amount that is MORE than 7.5% of your AGI counts)   The software program uses all the IRS rules that apply to the expenses you enter, and it tells you if you have enough to use your itemized deductions or if using the standard deduction is more advantageous for you.  Under the new tax laws, some deductions have been capped—there is a $10,000 limit to the itemized deductions for state, local, property and sales taxes.

Your standard deduction lowers your taxable income.  It is not a refund.  You will see your standard or itemized deduction amount on line 12 of your 2020 Form 1040.

2020 Standard Deduction Amounts

Single $12,400   (+ $1650 65 or older)

Married Filing Separate  $12,400   (+ $1300 if 65 or older)

Married Filing Jointly $24,800   (+ $1300 for each spouse 65 or older)

Head of Household $18,650  (+ $1650 for 65 or older)