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jlfish
New Member

I received a letter that I underpaid last year. I agree that I under paid and have to pay it this year, can I use that amount as a deduction on my 1099-R?

 
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TomD8
Level 15

I received a letter that I underpaid last year. I agree that I under paid and have to pay it this year, can I use that amount as a deduction on my 1099-R?

You cannot deduct federal tax payments.  You may be able to deduct state tax payments you made in 2016 for prior years, but you can't deduct any interest or penalties that you may have been assessed.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

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TomD8
Level 15

I received a letter that I underpaid last year. I agree that I under paid and have to pay it this year, can I use that amount as a deduction on my 1099-R?

You cannot deduct federal tax payments.  You may be able to deduct state tax payments you made in 2016 for prior years, but you can't deduct any interest or penalties that you may have been assessed.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

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