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What kind of taxes can I deduct on my return?

You may take a deduction for either state and local sales taxes or state and local income taxes. If you choose to deduct sales taxes, you can use your actual expenses or the sales tax tables. You may also deduct real estate taxes, certain personal property taxes, and if you paid any foreign income taxes, you may be able to take a deduction or a credit. You cannot deduct sales taxes paid for alcohol and cigarettes.


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