Are tax years 2016 & 2017 back taxes deductible for tax year 2018?Overpay state income tax this year to offset federal taxable income to the next year?Federal taxes for nonresident alien whose only income in 2016 was a 2015 state tax returnAre prepaid taxes ONLY applied to that year?What tax year do I claim a fellowship if it is on both the 2017 1098-T and the 2018 1042-S?Was the brouhaha on pre-paying real estate tax in 2017 for 2018 taxes ever resolved, and if so, how?Does IRS charge interest for underpaid taxes?Estate net income NEXT year less than $600. File final tax return for THIS year?Property Tax entry for 2018 Federal Income taxUsing Standard deduction while filing 1040NR for year 2018Received a Federal tax refund/credit from 2016 in 2018. I itemized. Do I report this as income on state taxes 2018?
If a centaur druid Wild Shapes into a Giant Elk, do their Charge features stack?
What is the offset in a seaplane's hull?
Why is the design of haulage companies so “special”?
How did the USSR manage to innovate in an environment characterized by government censorship and high bureaucracy?
Denied boarding due to overcrowding, Sparpreis ticket. What are my rights?
COUNT(*) or MAX(id) - which is faster?
Does bootstrapped regression allow for inference?
I’m planning on buying a laser printer but concerned about the life cycle of toner in the machine
What are the advantages and disadvantages of running one shots compared to campaigns?
Lied on resume at previous job
I see my dog run
Piano - What is the notation for a double stop where both notes in the double stop are different lengths?
"listening to me about as much as you're listening to this pole here"
How to answer pointed "are you quitting" questioning when I don't want them to suspect
Is it wise to focus on putting odd beats on left when playing double bass drums?
Is this food a bread or a loaf?
Manga about a female worker who got dragged into another world together with this high school girl and she was just told she's not needed anymore
When blogging recipes, how can I support both readers who want the narrative/journey and ones who want the printer-friendly recipe?
What do you call something that goes against the spirit of the law, but is legal when interpreting the law to the letter?
Why is my log file so massive? 22gb. I am running log backups
Patience, young "Padovan"
Can I find out the caloric content of bread by dehydrating it?
Was there ever an axiom rendered a theorem?
Does a dangling wire really electrocute me if I'm standing in water?
Are tax years 2016 & 2017 back taxes deductible for tax year 2018?
Overpay state income tax this year to offset federal taxable income to the next year?Federal taxes for nonresident alien whose only income in 2016 was a 2015 state tax returnAre prepaid taxes ONLY applied to that year?What tax year do I claim a fellowship if it is on both the 2017 1098-T and the 2018 1042-S?Was the brouhaha on pre-paying real estate tax in 2017 for 2018 taxes ever resolved, and if so, how?Does IRS charge interest for underpaid taxes?Estate net income NEXT year less than $600. File final tax return for THIS year?Property Tax entry for 2018 Federal Income taxUsing Standard deduction while filing 1040NR for year 2018Received a Federal tax refund/credit from 2016 in 2018. I itemized. Do I report this as income on state taxes 2018?
.everyoneloves__top-leaderboard:empty,.everyoneloves__mid-leaderboard:empty,.everyoneloves__bot-mid-leaderboard:empty margin-bottom:0;
If someone, in 2018, pays taxes, including interest and penalties, owed for tax years 2016 and 2017, then can that person claim a deduction for the paid taxes, only the original amount and no the taxes and fees, for their income for fiscal year 2018?
For example, suppose the person has gross income of $100k and owed $20k in both tax years 2016 and 2017, for a total owed taxes of $40k, but does not pay them on time. IRS imposes late penalty & interest fee of $5k until the person pays IRS total owed $45k in 2018. Person has gross income of $100k in 2018. Can the person claim $40k deduction for paying prior year federal taxes in the 2018 1040?
Any references are appreciated.
united-states tax-deduction
asked yesterday
2q.2q.
375
add a comment |
If someone, in 2018, pays taxes, including interest and penalties, owed for tax years 2016 and 2017, then can that person claim a deduction for the paid taxes, only the original amount and no the taxes and fees, for their income for fiscal year 2018?
For example, suppose the person has gross income of $100k and owed $20k in both tax years 2016 and 2017, for a total owed taxes of $40k, but does not pay them on time. IRS imposes late penalty & interest fee of $5k until the person pays IRS total owed $45k in 2018. Person has gross income of $100k in 2018. Can the person claim $40k deduction for paying prior year federal taxes in the 2018 1040?
Any references are appreciated.
united-states tax-deduction
asked yesterday
2q.2q.
375
add a comment |
If someone, in 2018, pays taxes, including interest and penalties, owed for tax years 2016 and 2017, then can that person claim a deduction for the paid taxes, only the original amount and no the taxes and fees, for their income for fiscal year 2018?
For example, suppose the person has gross income of $100k and owed $20k in both tax years 2016 and 2017, for a total owed taxes of $40k, but does not pay them on time. IRS imposes late penalty & interest fee of $5k until the person pays IRS total owed $45k in 2018. Person has gross income of $100k in 2018. Can the person claim $40k deduction for paying prior year federal taxes in the 2018 1040?
Any references are appreciated.
united-states tax-deduction
asked yesterday
2q.2q.
375
If someone, in 2018, pays taxes, including interest and penalties, owed for tax years 2016 and 2017, then can that person claim a deduction for the paid taxes, only the original amount and no the taxes and fees, for their income for fiscal year 2018?
For example, suppose the person has gross income of $100k and owed $20k in both tax years 2016 and 2017, for a total owed taxes of $40k, but does not pay them on time. IRS imposes late penalty & interest fee of $5k until the person pays IRS total owed $45k in 2018. Person has gross income of $100k in 2018. Can the person claim $40k deduction for paying prior year federal taxes in the 2018 1040?
Any references are appreciated.
united-states tax-deduction
united-states tax-deduction
asked yesterday
2q.2q.
375
asked yesterday
2q.2q.
375
edited 21 hours ago
2q.
asked yesterday
2q.2q.
375
asked yesterday
2q.2q.
375
asked yesterday
2q.2q.
375
375
add a comment |
add a comment |
3 Answers
3
active
oldest
votes
No! You can't take a tax deducton on tax*. Which is what the $40k is.
Tax isn't normally tax deductible when you pay it on time. Paying it late doesn't somehow make it more deductible.
Whether those interest and penalties are deductible is another question, but the same answer.
* You can often deduct taxes paid to other entities, such as your state or another country.
answered yesterday
HarperHarper
25k63789
add a comment |
If this was allowed, why would you pay taxes on time? For simplicity suppose that over three years income was 100k each year, and tax 20%. Normally, you would pay 20k each year for a total of 60k.
Now suppose you don't pay the first two years and pay 45k on the third one, including the penalty. If you were allowed to deduct the 45k, now the tax for the third year would be 20% of 55k, so 11k. The total paid would 45k+11k=56k, so not paying taxes in time would save you money.
The above effect would be more pronounced if we consider marginal tax.
No serious government can allow that (I've seen things like that happen in some shady places, but that's precisely one of the reasons they are shady and people evade taxes).
answered 19 hours ago
Martin ArgeramiMartin Argerami
1455
New contributor
Martin Argerami is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
Indeed. I'll edit that into the answer, if you don't mind.
– Martin Argerami
11 hours ago
add a comment |
It looks like federal back taxes are not deductible on the following year's federal tax return. I guess this makes sense since from gov's point of view they were owed to begin with so no reason to be able to deduct them.
answered yesterday
2q.2q.
375
add a comment |
Your Answer
StackExchange.ready(function()
var channelOptions =
tags: "".split(" "),
id: "93"
;
initTagRenderer("".split(" "), "".split(" "), channelOptions);
StackExchange.using("externalEditor", function()
// Have to fire editor after snippets, if snippets enabled
if (StackExchange.settings.snippets.snippetsEnabled)
StackExchange.using("snippets", function()
createEditor();
);
else
createEditor();
);
function createEditor()
StackExchange.prepareEditor(
heartbeatType: 'answer',
autoActivateHeartbeat: false,
convertImagesToLinks: true,
noModals: true,
showLowRepImageUploadWarning: true,
reputationToPostImages: 10,
bindNavPrevention: true,
postfix: "",
imageUploader:
brandingHtml: "Powered by u003ca class="icon-imgur-white" href="https://imgur.com/"u003eu003c/au003e",
contentPolicyHtml: "User contributions licensed under u003ca href="https://creativecommons.org/licenses/by-sa/3.0/"u003ecc by-sa 3.0 with attribution requiredu003c/au003e u003ca href="https://stackoverflow.com/legal/content-policy"u003e(content policy)u003c/au003e",
allowUrls: true
,
noCode: true, onDemand: true,
discardSelector: ".discard-answer"
,immediatelyShowMarkdownHelp:true
);
);
Sign up or log in
StackExchange.ready(function ()
StackExchange.helpers.onClickDraftSave('#login-link');
);
Sign up using Google
Sign up using Facebook
Sign up using Email and Password
Post as a guest
Required, but never shown
StackExchange.ready(
function ()
StackExchange.openid.initPostLogin('.new-post-login', 'https%3a%2f%2fmoney.stackexchange.com%2fquestions%2f107479%2fare-tax-years-2016-2017-back-taxes-deductible-for-tax-year-2018%23new-answer', 'question_page');
);
Post as a guest
Required, but never shown
3 Answers
3
active
oldest
votes
3 Answers
3
active
oldest
votes
active
oldest
votes
active
oldest
votes
No! You can't take a tax deducton on tax*. Which is what the $40k is.
Tax isn't normally tax deductible when you pay it on time. Paying it late doesn't somehow make it more deductible.
Whether those interest and penalties are deductible is another question, but the same answer.
* You can often deduct taxes paid to other entities, such as your state or another country.
answered yesterday
HarperHarper
25k63789
add a comment |
No! You can't take a tax deducton on tax*. Which is what the $40k is.
Tax isn't normally tax deductible when you pay it on time. Paying it late doesn't somehow make it more deductible.
Whether those interest and penalties are deductible is another question, but the same answer.
* You can often deduct taxes paid to other entities, such as your state or another country.
answered yesterday
HarperHarper
25k63789
add a comment |
No! You can't take a tax deducton on tax*. Which is what the $40k is.
Tax isn't normally tax deductible when you pay it on time. Paying it late doesn't somehow make it more deductible.
Whether those interest and penalties are deductible is another question, but the same answer.
* You can often deduct taxes paid to other entities, such as your state or another country.
answered yesterday
HarperHarper
25k63789
No! You can't take a tax deducton on tax*. Which is what the $40k is.
Tax isn't normally tax deductible when you pay it on time. Paying it late doesn't somehow make it more deductible.
Whether those interest and penalties are deductible is another question, but the same answer.
* You can often deduct taxes paid to other entities, such as your state or another country.
answered yesterday
HarperHarper
25k63789
answered yesterday
HarperHarper
25k63789
answered yesterday
HarperHarper
25k63789
answered yesterday
HarperHarper
25k63789
25k63789
add a comment |
add a comment |
If this was allowed, why would you pay taxes on time? For simplicity suppose that over three years income was 100k each year, and tax 20%. Normally, you would pay 20k each year for a total of 60k.
Now suppose you don't pay the first two years and pay 45k on the third one, including the penalty. If you were allowed to deduct the 45k, now the tax for the third year would be 20% of 55k, so 11k. The total paid would 45k+11k=56k, so not paying taxes in time would save you money.
The above effect would be more pronounced if we consider marginal tax.
No serious government can allow that (I've seen things like that happen in some shady places, but that's precisely one of the reasons they are shady and people evade taxes).
answered 19 hours ago
Martin ArgeramiMartin Argerami
1455
New contributor
Martin Argerami is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
Indeed. I'll edit that into the answer, if you don't mind.
– Martin Argerami
11 hours ago
add a comment |
If this was allowed, why would you pay taxes on time? For simplicity suppose that over three years income was 100k each year, and tax 20%. Normally, you would pay 20k each year for a total of 60k.
Now suppose you don't pay the first two years and pay 45k on the third one, including the penalty. If you were allowed to deduct the 45k, now the tax for the third year would be 20% of 55k, so 11k. The total paid would 45k+11k=56k, so not paying taxes in time would save you money.
The above effect would be more pronounced if we consider marginal tax.
No serious government can allow that (I've seen things like that happen in some shady places, but that's precisely one of the reasons they are shady and people evade taxes).
answered 19 hours ago
Martin ArgeramiMartin Argerami
1455
New contributor
Martin Argerami is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
Indeed. I'll edit that into the answer, if you don't mind.
– Martin Argerami
11 hours ago
add a comment |
If this was allowed, why would you pay taxes on time? For simplicity suppose that over three years income was 100k each year, and tax 20%. Normally, you would pay 20k each year for a total of 60k.
Now suppose you don't pay the first two years and pay 45k on the third one, including the penalty. If you were allowed to deduct the 45k, now the tax for the third year would be 20% of 55k, so 11k. The total paid would 45k+11k=56k, so not paying taxes in time would save you money.
The above effect would be more pronounced if we consider marginal tax.
No serious government can allow that (I've seen things like that happen in some shady places, but that's precisely one of the reasons they are shady and people evade taxes).
answered 19 hours ago
Martin ArgeramiMartin Argerami
1455
New contributor
Martin Argerami is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
If this was allowed, why would you pay taxes on time? For simplicity suppose that over three years income was 100k each year, and tax 20%. Normally, you would pay 20k each year for a total of 60k.
Now suppose you don't pay the first two years and pay 45k on the third one, including the penalty. If you were allowed to deduct the 45k, now the tax for the third year would be 20% of 55k, so 11k. The total paid would 45k+11k=56k, so not paying taxes in time would save you money.
The above effect would be more pronounced if we consider marginal tax.
No serious government can allow that (I've seen things like that happen in some shady places, but that's precisely one of the reasons they are shady and people evade taxes).
answered 19 hours ago
Martin ArgeramiMartin Argerami
1455
New contributor
Martin Argerami is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
edited 11 hours ago
answered 19 hours ago
Martin ArgeramiMartin Argerami
1455
New contributor
Martin Argerami is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
answered 19 hours ago
Martin ArgeramiMartin Argerami
1455
answered 19 hours ago
Martin ArgeramiMartin Argerami
1455
1455
New contributor
Martin Argerami is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
New contributor
Martin Argerami is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
Martin Argerami is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
Indeed. I'll edit that into the answer, if you don't mind.
– Martin Argerami
11 hours ago
add a comment |
Indeed. I'll edit that into the answer, if you don't mind.
– Martin Argerami
11 hours ago
Indeed. I'll edit that into the answer, if you don't mind.
– Martin Argerami
11 hours ago
Indeed. I'll edit that into the answer, if you don't mind.
– Martin Argerami
11 hours ago
add a comment |
It looks like federal back taxes are not deductible on the following year's federal tax return. I guess this makes sense since from gov's point of view they were owed to begin with so no reason to be able to deduct them.
answered yesterday
2q.2q.
375
add a comment |
It looks like federal back taxes are not deductible on the following year's federal tax return. I guess this makes sense since from gov's point of view they were owed to begin with so no reason to be able to deduct them.
answered yesterday
2q.2q.
375
add a comment |
It looks like federal back taxes are not deductible on the following year's federal tax return. I guess this makes sense since from gov's point of view they were owed to begin with so no reason to be able to deduct them.
answered yesterday
2q.2q.
375
It looks like federal back taxes are not deductible on the following year's federal tax return. I guess this makes sense since from gov's point of view they were owed to begin with so no reason to be able to deduct them.
answered yesterday
2q.2q.
375
answered yesterday
2q.2q.
375
answered yesterday
2q.2q.
375
answered yesterday
2q.2q.
375
375
add a comment |
add a comment |
Thanks for contributing an answer to Personal Finance & Money Stack Exchange!
- Please be sure to answer the question. Provide details and share your research!
But avoid …
- Asking for help, clarification, or responding to other answers.
- Making statements based on opinion; back them up with references or personal experience.
To learn more, see our tips on writing great answers.
Sign up or log in
StackExchange.ready(function ()
StackExchange.helpers.onClickDraftSave('#login-link');
);
Sign up using Google
Sign up using Facebook
Sign up using Email and Password
Post as a guest
Required, but never shown
StackExchange.ready(
function ()
StackExchange.openid.initPostLogin('.new-post-login', 'https%3a%2f%2fmoney.stackexchange.com%2fquestions%2f107479%2fare-tax-years-2016-2017-back-taxes-deductible-for-tax-year-2018%23new-answer', 'question_page');
);
Post as a guest
Required, but never shown
Sign up or log in
StackExchange.ready(function ()
StackExchange.helpers.onClickDraftSave('#login-link');
);
Sign up using Google
Sign up using Facebook
Sign up using Email and Password
Post as a guest
Required, but never shown
Sign up or log in
StackExchange.ready(function ()
StackExchange.helpers.onClickDraftSave('#login-link');
);
Sign up using Google
Sign up using Facebook
Sign up using Email and Password
Post as a guest
Required, but never shown
Sign up or log in
StackExchange.ready(function ()
StackExchange.helpers.onClickDraftSave('#login-link');
);
Sign up using Google
Sign up using Facebook
Sign up using Email and Password
Sign up using Google
Sign up using Facebook
Sign up using Email and Password
Post as a guest
Required, but never shown
Required, but never shown
Required, but never shown
Required, but never shown
Required, but never shown
Required, but never shown
Required, but never shown
Required, but never shown
Required, but never shown
