If you own back taxes can you deduct payment of these taxes or its penalties or interest?

Answer 1

YOU CAN'T GET A REFUND "ESSENTUALLY" MONEY YOU OWE TO THE GOVERNMENT. IF YOU COULD DEDUCT IT THEN (MEANING A BENEFIT/PAYBACK FOR YOURSELF) WHY WOULD YOU BE ASKED TO PAT IT TO BEGIN WITH? To above - because a deducion doesn't equal tax (that is called a tax credit)...following your logic ----if deductions didn't help lower tax...why would any exist? == == == == The Federal tax you pay isn't deductible from your income to then calculate the tax you pay (thats completely circular thinking). You determine your income before Fed tax and pay your tax based on that income. However, State income taxes are deductible from Federal income...so if you pay back State income taxes, you probably can get a refund of the Federal tax you paid on that deductible amount. Again, obviously State income tax isn't deductible in calculating the amount of State income you have to pay tax on.

It makes no difference if you pay the tax on time or late...it isn't deductible from itself.

Penalties are never deductible....it's contrary to public policy that someone should get a benefit from their wrong doing. Again doesn't matter if the penalty is for late filing, or for dealing drugs, or whatever.

Again, interest that isn't on the mortgage for your house, or basically part of a business enterprise, isn't deductible for anyone. Certainly not for paying taxes late or such.