If I paid taxes owed to the IRS in 2019 for 2018 can I use that as a deduction on my state tax return as additional Federal withholding taxes on my 2019 return?
Deborah
Deborah,
Good question, as the answer for most states is no. However, that is not true for your home state of Alabama. Six states allow some form of this tax break (AL, IA, LA, MO, MT, and OR), but only Alabama, Iowa, and Louisiana allow a full deduction for all federal income taxes paid.
Deductibly Yours,
Dave