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We paid c-corp federal taxes in 2018. Can these taxes be deducted as an expense on this year's return? Otherwise it seems we are paying taxes on taxes already paid.

Forum|Forum|7 years ago
June 5, 2019
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Best answer by CherylW

No, federal taxes are never deductible, whether it's a corporation or individual return. State and local taxes are though.

Here's why: if you deduct your prior year's federal tax paid for the year which you're filing a federal tax return, you're reducing your taxable income for that year. It's also why you don't have to report a refund from the IRS as taxable.

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CherylWAnswer

Employee

No, federal taxes are never deductible, whether it's a corporation or individual return. State and local taxes are though.

Here's why: if you deduct your prior year's federal tax paid for the year which you're filing a federal tax return, you're reducing your taxable income for that year. It's also why you don't have to report a refund from the IRS as taxable.