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We owed a balance for 2016. We set up a payment plan with the IRS for $100/mo towards our $1200 balance. Are those payments deductible?

The payment plan was utilized in 2017.
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We owed a balance for 2016. We set up a payment plan with the IRS for $100/mo towards our $1200 balance. Are those payments deductible?

Federal income taxes owed and paid for a prior tax year are not deductible on a federal tax return.

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We owed a balance for 2016. We set up a payment plan with the IRS for $100/mo towards our $1200 balance. Are those payments deductible?

Federal income taxes owed and paid for a prior tax year are not deductible on a federal tax return.

IreneS
Intuit Alumni

We owed a balance for 2016. We set up a payment plan with the IRS for $100/mo towards our $1200 balance. Are those payments deductible?

UPDATED FOR TAX YEAR 2019

 

No - federal tax payments made are not deductible on your 1040 return.

 

However, there are some states that allow you to deduct some part of your federal taxes on the state return:

  • Alabama 
  • Iowa
  • Louisiana
  • Missouri
  • Montana
  • Oregon

[Edited | 3/26/2020 |  12:11pm PDT]

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