Can I deduct federal and states taxes paid through bankruptcy?

murasek · ‎June 1, 2019

I made monthly payments thru bankruptcy during 2018 to pay for federal and states taxes for 2015 and older. Can I deduct these payments? If so, where?

If this is possible, then payments I made for 2015-2017 were not applied to my previous years filings. Is there a way to recoup those payments now?

xmasbaby0 · ‎June 1, 2019

The money you paid to the IRS for a previous year’s federal tax return is not deductible, so you do not enter it anywhere on your 2018 return. If you paid taxes due in 2018 to your state or local government, you can enter that by going to Federal> Deductions and Credits> Estimates and Other Taxes Paid> Other Income Taxes. You can enter the taxes you paid, but do not include any penalties or interest.

There are six states that allow you to enter the federal tax you paid on your state return--Alabama, Iowa. Louisiana, Missouri, Montana, and Oregon. If you are filing in one of these states watch for the deduction when you prepare your state return.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**