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June 1, 2019
Question

Can I claim federal/state states owed in 2016 but paid in 2017

  • June 1, 2019
  • 1 reply
  • 0 views

the section Other income taxes.  Am I able to list the amount of federal taxes that I owed and paid in 2017 for 2016.  I am self employed I had a payment plan set up to pay them.

1 reply

Employee
June 1, 2019

If you paid a federal balance due for 2016, you cannot deduct the amount on your 2017 federal return since you owed that amount for that year. However, you may be able to deduct state and local taxes in the year they were paid (2017), even if they are taxes from a prior year (2016). You'll need to itemize to take this deduction but TurboTax automatically selects the federal deduction – standard or itemized – that works best in your favor.

To enter, edit, or delete Estimates and Other Income Taxes Paid, please review the following instructions:

  1. If you are using TurboTax CD/Download, open the appropriate tax return.
  2. In the upper right corner, type "estimates paid" in the Search box and then select the "Jump to" link in the search results.
  3. Under Other Income Taxes Paid in 2017, select Start/Update on Balance due on your 2016 state taxes paid in 2017 or Balance due on your 2016 local taxes paid in 2017.

Please review the following link(s) and the link(s) embedded on the webpage(s) for more information: