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burakbegen
New Member

Is there a relief to my tax return if I owe money to IRS from previous returns?

I received an IRS letter stating that I owe IRS $8470 from my 2014 return. We created a payment plan for it. Is there any relief from this amount, any deductions to my tax return?
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Lisa995
Level 12

Is there a relief to my tax return if I owe money to IRS from previous returns?

No, you get no deductions for federal taxes owed from a prior year. 

Any state taxes you pay for prior years may be able to be included in itemized deductions as state taxes paid though.

Note:  Any refund you are entitled to for the 2016 tax return will automatically be applied to the past due 2014 balance due.  Some people think since they have a payment plan their refund will still be received, but it doesn't work that way.

♪♫•*¨*•.¸¸♥Lisa♥ ¸¸.•*¨*•♫♪

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1 Reply
Lisa995
Level 12

Is there a relief to my tax return if I owe money to IRS from previous returns?

No, you get no deductions for federal taxes owed from a prior year. 

Any state taxes you pay for prior years may be able to be included in itemized deductions as state taxes paid though.

Note:  Any refund you are entitled to for the 2016 tax return will automatically be applied to the past due 2014 balance due.  Some people think since they have a payment plan their refund will still be received, but it doesn't work that way.

♪♫•*¨*•.¸¸♥Lisa♥ ¸¸.•*¨*•♫♪

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