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Yes, state taxes paid in 2016 for a prior year are deductible as part of your itemized personal deductions for Schedule A.
Enter them under the
Federal Taxes tab,
Deductions and Credits
Choose What I Work on if you see it,
if not just scroll down to Estimates and Other Taxes Paid.
Start or Update Other Income taxes
Scroll down to Other Income taxes Paid in 2016.
The last choice will be for Payments for 2014 or earlier paid in 2016.
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