I paid state taxes in 2012 that were owed on a prior-year return. Can I deduct those tax payments?
Yes. You can deduct state and local income taxes that you actually paid in 2012. It doesn't matter what year the state and local taxes were owed. Report these as itemized deductions on Schedule A.
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This advice is for general information purposes only and may not apply to you. Every tax situation is different. This is not intended to be legal advice. Taxpayers should consult an H&R Block Tax Professional regarding their individual tax situation.