Question

FEDERAL AND STATE 2019 AMENDED TAXES PAID IN 2021. DEDUCTIBLE?

Forum|Forum|4 years ago
April 7, 2022
1 reply
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I caught a mistake in my 2019 tax returns while doing my 2020 taxes. I went back and filed amended 2019 state and federal returns and paid the extra taxes with interest and penalties. These were paid in 2021. Question is, can I deduct those taxes from my 2021 tax return.

X

xmasbaby0

Employee

No. Federal tax you paid is not deductible on your next tax return.

The money you paid to the IRS for a previous year’s federal tax return is not deductible, so you do not enter it anywhere on your 2021 return. If you paid taxes due in 2020 to your state or local government, you can enter that by going to Federal> Deductions and Credits> Estimates and Other Taxes Paid> Other Income Taxes. You can enter the taxes you paid, but do not include any penalties or interest.

There are six states that allow you to enter the federal tax you paid on your state return--Alabama, Iowa. Louisiana, Missouri, Montana, and Oregon. If you are filing in one of these states watch for the deduction when you prepare your state return.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**