How should repayment of federal and state taxes due to a business closing that are now personal be reflected?

State income tax payments qualify as a deduction if itemized deductions can be used.  The standard deduction for married filing jointly is $12,600, if you itemized deductions are not greater than this amount then there is no need to enter your prior year state income tax payments made in 2016.  Itemized deductions can be completed in TurboTax Deluxe version, don't upgrade if you don't think you can utilize.

There is no deductions for the payment of federal tax.

1. Sign into your TurboTax account (online or desktop) 
2. These are entered into the Deductions & Credits section, 
3. simply type state tax payments into the search box, upper right 
4. then jump to state tax payments.  
5. Then scroll to the bottom and enter your balance due on my 2015 state taxes paid in 2016.
6. Enter your balance due on my 2015 local taxes paid in 2016.
   

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