Phil Marti wrote:
- quote -

I'm sure you didn't mean to include penalties when you said
"unless related to a tax on business activity." There's no
deducting of penalties.

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tekrex[at]gmail.com wrote:

- quote -

If the tax itself is a deductible type, then the late
payment of such is also deductible, but NOT the interest nor
the penalties added to it.

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<tekrex[at]gmail.com> wrote:

- quote -

If you itemize on your federal return (Schedule A) you can
deduct the taxes you paid to Calif. If you don't itemize,
your state tax payments are considered to be subsumed into
your standard deduction.

Depending on the amounts involved, there could be
alternative minimum tax (AMT) consequences.

Frederick Lorca

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tekrex[at]gmail.com wrote:

- quote -

State income taxes paid in 2004 are deductible. However, you
can't deduct any penalty or interest you paid the state for
back taxes owed.

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<tekrex[at]gmail.com> wrote:

- quote -

The portion that represents state income taxes would be
deductible on your FEDERAL tax return, but only if you
itemize deductions. Any payments that relate to penalties
and interest on the taxes would NOT be deductible. (I'm
assuming this was all related to your personal taxes, not
business.)

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tekrex[at]gmail.com says...

- quote -

Only the taxes paid are deductible. Not the interest or
penalties. There is some risk of the deduction being lost
due to AMT (Alternative Minimum Tax) kicking into gear.

Gary

--
E-mail to the above address is rarely read. If you want to
contact me directly, please send an e-mail to: gary at
gdgoodman dot com.

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State income tax *paid* in 2004 is deductable on Schedule A
form 1040. It is not deductable from the state income tax
(that I know of).

Missy Doyle

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<tekrex[at]gmail.com> wrote:

- quote -

Payments of only tax are deductible on Schedule A of your
Federal 1040. Penalties and interest are not deductible
unless they're related to a tax on business activity
(Schedule C)

--
Phil Marti
Clarksburg, MD

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<tekrex[at]gmail.com> wrote:

- quote -

not enough information given (what kind of back taxes were
paid? income? property? other?)

if you are asking if you can deduct prior year income tax
liabilities paid with monies garnished from your wages, no,
though interest paid on such liabilities may be deductible

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I had some problems with taxes a few years ago and the state
of California garnished my income. So last year I had to
payback taxes for 2002 and 2003.

Are my payments for these back taxes deductable from my '04
income?

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