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Financial Planning / Tax Strategies
|Subject: Completed payment of 1998 Federal Taxes in 2000||Date: 4/15/2001 3:06 AM|
|Author: tinmary||Number: 50272 of 124467|
I owed a lot ($9,000+) for my 1998 Federal Taxes, so I opted to pay it off over the course of the year in monthly installments. I set up a montly installment plan with the IRS. I paid the bulk of it in 1999 but the last few installments spilled over into the beginning of 2000.
I shouldn't be taxed on the income that I earned in 2000 that I used to pay off federal taxes owed for 1998, right? This amount should just be deducted from my 2000 taxable income, right?
If this is the case, where do I report the amount I paid so that it properly deducts itself from my 2000 taxable income?
Thanks for any shared wisdom.
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