I have a question concerning the tax return I just filed. Last year (1996) when I filed my taxes, I had to pay $536 upon filing my state tax return. I have always itemized deductions including 1996 and 1997. After I filed my 1997 return I started thinking that I could of (should of) added in (somewhere on schedule A) the $536 extra I paid in state taxes last year for 1996. I used Turbo Tax, but somehow it didn't remind me of this deduction, if it is a legitimate deduction. I didn't use TTax for my state return since its so simple compared to the federal return. Should I have been able to deduct the state tax paid last year on schedule A and if so where on schedule A should it go? Also is there any penalty for filing an amended tax return?

Thank fo any help
Rusty Nelson