Deduction for underpayment??

[shibadad]

What is the name of your state? Ohio
After filing fed tax for 2002 last year I owed some money. Sent them a check in 2003. I file 1040, itemize.
Since the money I paid was tax and would normally show up on line 62 if taken from my pay, shouldn't it be deductible somewhere on the 1040? IRS person says no. Doesn't make sense to me.

 

[Snipes5]

Federal Tax paid isn't deductible on a Federal Return.

Your tax return is where you "settle up" with the government for the year. The amount you paid was what you owed for 2002. The fact that you wrote the check in 2003 doesn't make a difference, since it's Federal tax, and not state.

Snipes

 

[shibadad]

I agree that what I paid was what was owed. But, If it would have been paid in 2002, then I would have received a deduction for that amount on line 62..so whats changed? If it would have been deductible in 2002 as a "tax paid", then why not in 2003, as a "tax paid"?

 

[abezon]

Because it wasn't a tax paid for 2003; it was tax paid for 2002. You're trying to get double credit for the payment -- once to pay off what you owe for 2002 & once to cover what you owe for 2003. Nice try.

 

[shibadad]

You assume too much...How did I get credit for it in 2002? I just want credit for the amount I actually paid.The w2 only reflects what was taken out of your pay, not the amount owed.
Look at it this way.
For example
w2 shows 2002 deductions for fedtax = 2000
Do your taxes in Jan 2003, you underpaid by 500
You send a check for 500. That 500 has to be credited as income tax paid by you. Taxes paid are deducted in the year paid(normally). But the IRS doesn't give you a line on the 1040 to reflect that you paid an extra 500(even though it was for a previous year.
Now. If I would have caught the error Dec30 2002 and mailed them the 500 on Dec 31 2002 I would be able to deduct all 2500 for the year 2002.

 

[Snipes5]

Line 62 isn't deductions, it's tax paid.

You owed at the bottom of your return and you paid it.

When you paid it, 2002 was then settled up at zero.

There is no deduction ANYWHERE for individual, federal income tax paid.

If you had OVERPAID, you would have gotten a refund. For 2002, not 2003.

Get over it.

Snipes