federal deduction

[Jim2]

Is the 2020 payment of state taxes (and interest) for a n earlier year , because federal refund not reported correctly, deductible?

[VolvoGirl]

yes if you itemize deductions you can deduct any state taxes paid in 2020 for any year.  And state withholding.  But there is a max 10,000 limit of State, local, property, and sales tax (SALT) deduction. And you can only deduct Medical/Dental that's over 7.5% of your AGI.  And W2 job expenses have been suspended.

FAQ on 2018 changes
https://ttlc.intuit.com/community/tax-reform/help/how-will-tax-reform-affect-my-federal-tax-return/0...

[VolvoGirl]

And some Deductions that have been suspended for 2018-2025
https://ttlc.intuit.com/community/tax-reform/help/which-federal-tax-deductions-have-been-suspended-b...

[Jim2]

Is the interest that we also paid the state deductible?

[VolvoGirl]

No.  Not interest or penalties.  Only the actual tax paid.

[Jim2]

Thanks!