Can I deduct taxes and penalties paid this year?
Long story: we did not receive a W2 from one of my wife's jobs 2 tax seasons ago. The place went under, all her paystubs were digital, and she lost the ability to retrieve those when the place went under. Since I never received a W2 and had no way (other than a guess) on how much she made, tips, etc....I just didn't include it.
This past year, I received a bill from the IRS. Saying I owed X amount of dollars due to this W2 not being included. So it sounds like the information made it to the IRS at some point in the next year, but never to the employees. I paid the X amount of dollars and thought I was done. No amended return was filed, just paid my bill.
Then just a couple of months ago, I got a letter from the State saying I owed them money as well. After fighting back and forth about whether or not I had to file an amended return, I paid them off as well for Y amount of dollars.
My question is, since I paid X + Y out of this year's income, can I deduct this amount anywhere on my 2014 taxes?