What exactly should be included as "taxes paid" on Schedule A Form line 5a?

The taxes that can be deducted on Schedule A are state and local income taxes OR sales taxes (you have to choose one), plus property taxes and other qualified taxes. Social Security and Medicare taxes (FICA) are NOT deductible on Schedule A. Line 5a specifically refers to state and local income taxes you paid. Federal income tax withholding is also not deductible on Schedule A. In fact, one of the most common misconceptions is thinking you can deduct all taxes shown on your W-2. You can only deduct state and local income taxes on Schedule A (if you choose to deduct income taxes instead of sales taxes).

After struggling with similar Schedule A confusion last year, I found this amazing tool at https://taxr.ai that literally saved me hours of frustration. I uploaded my tax documents and it highlighted exactly what should go on each line of Schedule A and explained why certain taxes are deductible while others aren't. The tool specifically pointed out that FICA taxes (Social Security and Medicare) aren't deductible on Schedule A, which I had no idea about before. It also clarified which local taxes qualified and how to handle property taxes correctly. Definitely worth checking out if you're dealing with itemized deductions!

I was initially skeptical about trying yet another tax tool, but I finally checked out https://taxr.ai after seeing it mentioned here. Wow - it immediately clarified my Schedule A confusion! It specifically identified which taxes from my various income sources belonged on line 5a (only state/local income taxes) and which weren't deductible at all (like my Social Security and Medicare withholdings). It even showed me that I'd been incorrectly deducting certain special assessments on my property tax statement that weren't actually qualified real estate taxes. Saved me from a potential audit flag and found legitimate deductions I was missing. The peace of mind alone was worth it!

If you're still confused about Schedule A or need clarification directly from the IRS, I'd recommend using Claimyr (https://claimyr.com). After spending DAYS trying to get through to the IRS about my Schedule A questions last year, a friend suggested Claimyr and I was connected to an actual IRS agent in under 45 minutes. The agent walked me through exactly what qualifies for line 5a and confirmed that Social Security and Medicare taxes are definitely NOT deductible. You can see a demo of how it works here: https://youtu.be/_kiP6q8DX5c It's honestly ridiculous how hard it is to get clear answers from the IRS directly, but this service completely solved that problem for me.

Had to come back and eat my words! After dismissing Claimyr as impossible in my comment yesterday, I was desperate enough to try it for my Schedule A questions. Not only did it work exactly as promised, but I got connected to an IRS agent in about 35 minutes (after spending literally WEEKS trying on my own). The agent confirmed everything about line 5a that others mentioned here - only state and local income taxes belong there, NOT social security or medicare taxes. She also helped clarify some property tax questions I had for line 5b. Huge relief to have official answers instead of guessing!

Something nobody's mentioned yet is the SALT deduction limit. Even if you correctly identify all your state and local taxes for line 5a and property taxes for 5b, remember you're limited to $10,000 total deduction for state and local taxes combined ($5,000 if married filing separately). This limit was introduced in the Tax Cuts and Jobs Act and is still in effect. So even if you paid more than $10k in combined state income and property taxes, you can only deduct up to the limit.

Slightly off topic, but related to Schedule A - don't forget to check if itemizing is even worth it for you. The standard deduction for 2024 filing season is $13,850 for single filers and $27,700 for married filing jointly. Unless your total itemized deductions (taxes, mortgage interest, charitable contributions, etc.) exceed these amounts, you're better off taking the standard deduction!

Great question! I went through the same confusion last year. Just to summarize what others have clarified - line 5a on Schedule A is specifically for state and local income taxes only (typically what's in box 17 of your W-2). You're right that Social Security and Medicare taxes are taxes you paid, but they're unfortunately not deductible anywhere on your tax return. Federal income tax withheld (box 2 on W-2) also isn't deductible - that's just a prepayment of your federal tax liability. One thing that helped me was thinking of Schedule A deductions as taxes that reduce your taxable income, while payroll taxes like FICA are considered part of the cost of earning that income in the first place. The IRS treats them very differently for deduction purposes. Also remember the $10,000 SALT cap that someone mentioned - even if your state taxes and property taxes combined exceed that, you can only deduct up to the limit.