Liability payment from 2017

[DiamondRick]

I received a tax liability notice from the Kentucky Department of Revenue in 2022 regarding an adjustment made to Schedule A mistake I made in 2017. I paid it in 2022 when I received the notice. Should I enter this amount somewhere on this years 740 EZ?

[JohnW152]

No, you wouldn't enter it anywhere on Form 740-EZ.

However, go ahead and enter your information into TurboTax.  It's possible that you could get a deduction for state income taxes paid if you wind up itemizing any deductions you may have.  TurboTax will tell you whether you're eligible or not.

To enter your prior year state income tax paid in 2022 in TurboTax Online:

1. If you don’t see 2022 TAXES in the left pane, scroll down and select the dropdown to the right of Deductions & Credits and select Let’s get started, Pick up where you left off, or Review/Edit. 
   • Otherwise, in the left pane, select the dropdown to the right of Federal, then select Deductions & Credits 
2. On the  Your tax breaks page, scroll down and select the Show more dropdown to the right of Estimates and Other Taxes Paid
3. Scroll down to the Other Income Taxes Paid in 2022 section, and select Start to the right of Payments for 2020 or a prior year state or local income taxes paid in 2022
4. Enter your information on the How much did you pay in 2022 towards state or local taxes for 2020 or prior years? screen, then select Continue

Please see the TurboTax article Standard Deduction vs. Itemized Deductions: Which Is Better? for information on itemizing.

[DiamondRick]

JohnW152 : Thank you so much for replying. It wasn't that much money anyway, but I wanted to be sure. You were a big help.