Thank you for your valuable information! We haven’t claimed anything yet, we were just assessed this year for 2019,20,&21. We recently paid the state. So can I claim what we owed/paid this year next year, or can I claim each year over the next 3 years? In other words, can I claim the amount in taxes owed to NC in 2019 in 2023 taxes, 2020 in 2024, and 2021 in 2025? Each year we could easily claim the maximum of $10,000, and that doesn’t include any interest or penalty. I’m thinking though I can only claim what I actually paid this year for 2023 taxes, which grossly exceeds $10,000. Because this was deemed a honest mistake and because I have never tried to defraud the government on my taxes, the state graciously agreed to refund my penalty and some interest. I was worried that the amount they refunded would have to be reported as income even though it wasn’t income but a reduction in what we owed/paid. I still paid over $6,000 in interest.
