State taxes owed from prior year

[CHUCKles4me]

I have misfiled my wife’s eligibility for the Bailey Settlement in NC since 2019.  We have been audited this year and owe NC tax on her retirement.  We owe more than $10,000 in 2022 and have not paid it yet.  Still waiting for a bill from our auditor.  Can I claim the amount of NC state tax I owe in 2022, as a deduction?  Or can I only claim what has been paid?

[Critter-3]

Sorry you can only claim what you paid during the tax year.

[CHUCKles4me]

Thank you.  After I pay a portion of my total state tax bill, can I claim that next year?

[HopeS]

Assuming you are taking Itemized Deductions, yes, you can take the deduction on Form 1040 Schedule A  for the amount paid during the year since you are a cash basis taxpayer.

The IRS limits your state and local tax deduction to $10,000. Therefore, you should review your deductions to see if the total deductions claimed on your return for sales tax, personal property tax, real estate, and state and local tax, are less than $10K.

Here is a helpful link on Itemizing Deductions:

How to Maximize Deductions

@CHUCKles4me 

[Edited 3/20/2023 | 05:40AM PST] @CHUCKles4me