Where do you include a state tax penalty payment made for a previous year?

[adamhurwitz]

I received a letter in October of 2023 from my state of residence that I owed a small penalty for 2022. I paid immediately in October of 2023. Do I include this penalty payment in my 2023 taxes?

Potential areas to include my 2023 tax penalty payment in the TurboTax desktop app

• "Federal Taxes" > "Deductions & Credits" > "Estimates and Other Taxes Paid" > "Estimates" > "State estimated taxes for 2023" > "Enter More Payments"
• Schedule C (Form 1040) as an expense

Much appreciated!
Adam

[MinhT1 · Accepted solution]

You don't report the tax penalty paid for 2022 on your state tax return for 2023.

Tax penalties aren't deductible.

[adamhurwitz]

Thank you for the info @MinhT1!

I spoke with a TurboTax support expert on the phone today who informed me I could add this on my Schedule C (Form 1040) which of course conflicts with the info above. I'll take the conservative approach above and not include it unless I learn of new info.

Moving forward it would be a good idea to ask support to guide me to the relevant documentation in order to verify their info provided.