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Updated almost 4 years ago,
Paid IRS after Audit. How does that impact my return for 2020?
Hello,
I asked this question to my CPA and the answer didn't make sense to me. Last year I got audited for my 2015 CA state tax return. That year I did my taxes on Turbotax and fell for a misleading Turbotax trap. I had to pay a large amount of taxes in 2020 for this 2015 mistake – let's round it to $10k just for argument sake.
Can I deduct those $10k on my 2020 Federal Tax return? Is there any caveat like for example it depends on my total 2020 income?
Thanks in advance!!
Ilan