2007 Tax Guide

But don't get carried away in deducting taxes. There are some payments that Uncle Sam won't allow you to subtract from your federal income, including: * Federal...See more » But don't get carried away in deducting taxes. There are some payments that Uncle Sam won't allow you to subtract from your federal income, including: * Federal excise taxes. * Social Security and Medicare, or FICA, taxes. * Federal unemployment, or FUTA, and railroad retirement, or RRTA, taxes. * Customs duties. * Federal estate and gift taxes. * State gasoline taxes. * State sales taxes. * Car registration and inspection fees. * Transfer, or stamp, taxes on the sale of property. * License fees, such as driver's, marriage or pet tags. * Assessments for sidewalks or other property improvements. * Parking and traffic tickets or other fines. And if you paid any tax penalties or interest, sorry. These charges aren't deductible either. Freelance writer Kay Bell writes Bankrate's tax stories from her home in Austin, Texas, and blogs on tax topics at Don't Mess with Taxes.See less »