Can I decuct the amount paid on my 2005 federal return?
2006-10-01 05:38:15 · 5 answers · asked by Scott E 2 in Business & Finance ➔ Taxes ➔ United States
No. Only particular types of interest are deductible, and then only if you itemize. Home mortgage interest and a couple other specific types of interest are, interest on underpayment of taxes is considered personal interest and is not deductible.
Penalties are not deductible.
2006-10-01 07:24:35 · answer #1 · answered by Judy 7 · 1⤊ 0⤋
When deducting your income tax, you cannot deduct any penalties or interest, only the actual tax liability paid.
Wish it were different - I've attached the page from the Schedule A instructions that states this clearly. Took me a while to find the statement, since it's not in the usual publications that I could find.
Let me know if I can be of further assistance.
2006-10-01 07:30:41 · answer #2 · answered by Katie Short, Atheati Princess 6 · 1⤊ 0⤋
no, just ask for a penalty wavier from the state tax department when you pay the tax and interest. You'll most likely get it. Most state look at your 10 year filing history. if you are in good standing with the state then you shouldn't have any problem get the penalty waived.
good luck
2006-10-02 05:12:00 · answer #3 · answered by Kenshin 5 · 0⤊ 1⤋
If you overpaid, maybe. You'll have to call and talk to the IRS directly. We had to set up a payment plan to pay it off. It might be easier for you that way.
2006-10-01 05:46:18 · answer #4 · answered by scratch_fury_destroyer_of_worlds 3 · 0⤊ 3⤋
possibly
2006-10-01 05:40:44 · answer #5 · answered by Anonymous · 0⤊ 3⤋