Federal Taxes paid in 2023 for a previous year

[gd67]

My 2021 tax return was audited in 2023 due to an error in my not reporting a capital gains amount. During the audit I made a $500 tax payment to the IRS in 2023 to offset any additional taxes due to the error on my 2021 return.  After they completed the audit the IRS kept $369 for the tax due on the capital gains error and returned the remaining amount to me.

Do I need to report the additional $369 on my 2023 tax return?  And if so where do I report it in Turbo Tax?

[DoninGA]

Taxes owed and paid for a prior tax year are not reported on a tax return.  The funds returned to you by the IRS are not reported on a federal tax return.

[JohnB5677]

No, do not report the tax you paid for your 2021 tax return on your 2023 taxes.  Consider 2021 as a closed book, not affecting 2023.

You did say that you put $500 in to cover the 2021 taxes included a refund back to you.

[xmasbaby0]

No.   Federal tax that you paid is not deductible.  You do not enter it on your 2023 federal tax return .  There are a handful of states for which you can enter federal tax you paid:

Alabama, Iowa, Missouri, Montana, and Oregon.  If you are filing in one of these states watch for the deduction when you prepare your state return.

[gd67]

Yes I paid the IRS $500 in 2023 to cover the tax due in 2021.  They kept $369 and refunded me the difference.

[gd67]

Thanks!