2007-08-14 09:35:17 · 6 answers · asked by James W 3 in Business & Finance ➔ Taxes ➔ United States
The only potential possible way that you could deduct restitution payments is if you declared the income on what you are paying restitution on, and that most likely will not happen, because more than likely you didn't declare the income in the first place (the IRS says even if income is illegally earned it is supposed to be declared and taxes should be paid on it).
2007-08-14 09:48:41 · answer #1 · answered by Anonymous · 0⤊ 2⤋
Only if it is restitution to the government. Private restitution claims are not processed by the IRS or state tax authorities. However, once your refund hits your bank account it's fair game for anyone with a court judgment.
Disregard! I mis-read the question. I interpreted it as a refund being captured for restitution purposes.
No, restitution is not a tax-deductible item.
2007-08-14 09:40:35 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 1⤋
No, you may no longer deduct your state taxes from the quantity you owe for federal taxes. yet what you're able to do is deduct your state taxes, in case you itemize, out of your earnings till now you calculate your federal taxes. State taxes are an itemized deduction. i think of Steve P merely study the 1st line of your question and assumed what you have been asking, fairly than analyzing the entire question.
2016-10-15 08:17:06 · answer #3 · answered by ? 4 · 0⤊ 0⤋
No. Restitution is not deductible for tax purposes.
2007-08-14 09:45:56 · answer #4 · answered by CPA/PFS 2 · 0⤊ 0⤋
No, you're paying restitution is not deductible.
2007-08-14 09:38:32 · answer #5 · answered by Judy 7 · 0⤊ 0⤋
yes indeed.
2007-08-14 09:38:36 · answer #6 · answered by Anonymous · 0⤊ 3⤋