I have payment agreements with the State of Connecticut and the Federal Government to pay back taxes for 2014. Are those payments tax deductible?

[DoninGA · Accepted solution]

The federal income taxes owed and paid for prior tax years are not deductible on a federal tax return.

The state income taxes owed and paid for prior tax years are deductible on a federal tax return as an itemized deduction on Form 1040 Schedule A.  However, no interest or penalties for those tax payments are deductible.

To enter State income taxes paid  - 

• Click on Federal Taxes (Personal using Home and Business)
• Click on Deductions and Credits
• Click on I'll choose what I work on (if shown)
• Scroll down to Estimates and Other Taxes Paid
• On Other Income Tax click on the start or update button

Or enter state and local tax payments in the Search box located in the upper right of the online program screen.  Click on Jump to state and local tax payments

Scroll down to Other Income Taxes Paid in 2016