I payed back taxes on an installment agreement in 2016. Can I get a decduction or credit for those taxes paid out of my income?

[csbowman1]

I've been paying for 3 years.  In 2016 I paid  $2,949

[CherylW · Accepted solution]

If it was a federal installment agreement, then No.  You can never deduct federal income taxes paid on your Form 1040.

If it was a state installment agreement:

1. Go to Deductions and Credits.

2. Go down to Estimates and Other Taxes Paid. 

3. Click Start or Update by Other Income Taxes.

4. Go down to Other Income Taxes Paid in 2016.

5. Select Start by Payments for 2014 or a prior year state or local income taxes paid in 2016.

You'll be able to get a deduction on Schedule A, Itemized Deductions, for state or local income taxes paid in 2016, as long as you have enough to itemize.

[simplefly22]

Is what you stated for 2016 tax installments non-deductible status still apply on my 2021 1040 for a direct debit installment agreement I made for my 2020 taxes last year(2021)?

[AmyC]

Correct, you can  deduct state taxes paid on your federal, if you itemize. You can deduct federal taxes paid on a few state returns. It is smart to check and enter it in the program where appropriate.

@simplefly22