Many federal, state, and local government taxes are not deductible because they do not fall within the categories discussed earlier. Other taxes and fees, such as federal income taxes, are not deductible because the tax law specifically prohibits a deduction for them.

Taxes and fees that are generally not deductible include the following items.

• Estate, inheritance, legacy, or succession taxes. These taxes are generally not deductible. However, you can deduct the estate tax attributable to income in respect of a decedent if you, as a beneficiary, must include that income in your gross income. In that case, deduct the estate tax as a miscellaneous deduction that is not subject to the 2%-of-adjusted-gross-income limit. For more information, see Estate Tax Deduction in Publication 559, Survivors, Executors, and Administrators.
• Federal income taxes. This includes taxes withheld from your pay.
• Fines. You cannot deduct penalties for violation of any law, including forfeiture of related collateral deposits.
• Gift taxes.
• License fees. You cannot deduct license fees for personal purposes (such as marriage, driver's, and dog license fees).
• Social security. This includes social security, Medicare, or railroad retirement taxes withheld from your pay.
• Social security and other employment taxes for household workers. You generally cannot deduct the social security or other employment taxes you pay on the wages of a household worker. However, you may be able to include them in medical or child care expenses. For more information, see chapters 23 and 33.

Many taxes and fees other than those listed above are also nondeductible, unless they are ordinary and necessary expenses of a business or income producing activity. For other nondeductible items, see Real Estate-Related Items You Cannot Deduct, earlier.

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