Submitted By: Anne
Answered: May 22, 2015 12:01 pm

I paid federal tax when I filed my 2013 return at the beginning of October. Can I deduct this payment on my 2014 return?

No, federal income taxes are not deductible. But if you also paid state income tax in 2014 for 2013, you can deduct it on your 2014 federal income tax return.

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Tax Glossary

Adjusted basis

A statutory term describing the cost used to determine your profit or loss from a sale or exchange of property. It is generally your original cost, increased by capital improvements, and decreased by depreciation, depletion, and other capital write-offs.

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