Where do you include a state tax penalty payment made for a previous year?

Forum|Forum|2 years ago
March 10, 2024
1 reply
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I received a letter in October of 2023 from my state of residence that I owed a small penalty for 2022. I paid immediately in October of 2023. Do I include this penalty payment in my 2023 taxes?

Potential areas to include my 2023 tax penalty payment in the TurboTax desktop app

"Federal Taxes" > "Deductions & Credits" > "Estimates and Other Taxes Paid" > "Estimates" > "State estimated taxes for 2023" > "Enter More Payments"
Schedule C (Form 1040) as an expense

Much appreciated!
Adam

TurboTax Self Employed Online

Best answer by MinhT1

You don't report the tax penalty paid for 2022 on your state tax return for 2023.

Tax penalties aren't deductible.

MinhT1Answer

You don't report the tax penalty paid for 2022 on your state tax return for 2023.

Tax penalties aren't deductible.

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adamhurwitzAuthor

Thank you for the info @MinhT1!

I spoke with a TurboTax support expert on the phone today who informed me I could add this on my Schedule C (Form 1040) which of course conflicts with the info above. I'll take the conservative approach above and not include it unless I learn of new info.

Moving forward it would be a good idea to ask support to guide me to the relevant documentation in order to verify their info provided.