How do I claim and report deductible tax payments?

If you are going to claim tax payments on your federal income tax returns, you have to itemize your deductions and use Form 1040. You will use Schedule A to report your state and local taxes, as well as any deductible foreign taxes. You can also use Schedule A to report deductible real estate and personal property taxes. However, if your property was used for a business purpose, those taxes should be reported on Schedules C or F instead. Similarly, if the property was rental property, the taxes should be reported on Schedule E.