Some state and local taxes can help taxpayers reduce their federal tax bills. You'll find a place to write off these taxes on Schedule A, the form used to itemize deductions.
Filers can choose to claim state and local income taxes or sales taxes. Property taxes, usually the real estate taxes homeowners pay to their county or parish tax collectors, also offer a nice tax deduction to many taxpayers.
All these state and local tax deductions are projected to cost Uncle Sam more than $230 billion.