I asked a question about deducting federal taxes for 2002 & 2003 paid in 2006 & was told that you cannot.?

Question

Then I found this. Can someone tell me what this refers too? See number 3. The website is
http://www.ador.state.al.us/incometax/1webreghold/810-03-015-20.htm
Thanks

810-3-15-.20 Federal Income Tax Deduction - Individuals.
(1) DEFINITIONS. For the purpose of this regulation, the following words, phrases and abbreviations have these meanings:
(a) FIT: Federal income tax. Deductible federal income tax includes:
1. Federal income tax withheld by employers during the taxable year.
2. Excess social security or Medicare tax (FICA) and railroad retirement tax (RRTA) withheld during the taxable year…
3. All federal income tax payments made during the year for liabilities of prior years, including the previous year's payment made when the previous year return was filed.
4. All federal income tax estimate payments made during the year….
5. Earned income credit of the previous year which was applied to the previous year's federal income tax liability.
6. Alternative Minimum Tax.

Answer 1

That looks like it is coming off the state of Alabama website.

For some states, deducting a portion of federal taxes is allowed. You will have to look in the instructions for the form you are trying to file. Without knowing if you are looking at a individual, partnership or corporate return, it would be very time consuming to assist you.

ETA - Obviously those of you who gave an thumbs down don't know that in some states you CAN deduct part of the federal tax. Look at Iowa.

Answer 2

You cannot deduct federal taxes paid for prior years on your federal tax return, however, you CAN deduct STATE tax payments made for prior years on your federal Schedule A if you itemize.

The list above refers to all types of federal tax pymts that can be included as "payments" on your return. It does not refer to "deductions". You never get a deduction for paying federal tax.
#3 from above can refer to if for example you make quarterly estimated payments. You can make a payment in 1/07 that would apply to 2006 tax liability.

Answer 3

Federal taxes at the instant are not deductible, whether or no longer they are paid on time or no longer. If this became a State tax debt, the taxes paid are deductible in case you itemize your deductions. Any effects and interest at the instant are not deductible.

Answer 4

The website is for Alabama state taxes. Your question was probably answered for FEDERAL return. On your federal return, you can't deduct federal income tax paid for any year. Some states allow deductions for their state income tax.

Answer 5

That's for a state return. If AL allows you to deduct Federal taxes, take the deduction. But you cannot deduct Federal taxes on a Federal return.

Answer 6

I do not know Alabama's regs. However, maybe this is somewhat relevant: On your Fed. return, you deduct all state taxes paid that year, because individuals are cash basis taxpayers. Therefore, if I paid state taxes in 2006 for tax year 2002, they would be deductible on my Fed 2006 return.

okay, so follow me here. If Alabama normally allows you to deduct payments to the Fed gov't on your AL return, it his highly likely they'll let you deduct all pmts, even if they were for prior years, if they were paid in 2006.

See if you can get a phone # for AL Dept of Revenue for help or go to a Tax Professional.Good luck!

Answer 7

Federal taxes are NOT deductible.

If you have excess FICA, that can be applied to your federal liability but that doesn't mean that federal taxes are deductible. Your quote does not say they are deductible.

Answer 8

Contact the irs cause i believe you can file up tp four years back but you will have to pay more to file because there past dated or wait toward the end of the year when it's cheaper