Hi, my state state revenue agency found an error in my 2018 state tax return, and sent me a notice in 2020 of the finding and the required tax and interest penalty, which I paid. Question: Would this amount that I paid need to entered somewhere on my 2020 state tax return? If so, where would TurboTax let me enter that information? Thanks.
No, not on your state return, however, if you itemize your deductions, you can deduct it with your other State Tax Payments. You can only deduct the tax not the penalty amount.
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Just on federal. You can deduct any state taxes paid (for any year) or state estimates actually paid in during the year on your federal return if you Itemize deductions. But just the tax, not anyinterest or penalties. If you transferred from last year it might already be filled in.
Enter it under
Federal on left
Deductions and Credits
Then scroll way down to Estimates and Other Taxes Paid
Other Income Taxes - Click the Start or Update button
Next page scroll way down to the last section, Other Income Taxes Paid