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Subject:  Re: Prior year state taxes paid in 2001 Date:  2/12/2002  9:06 PM
Author:  ptheland Number:  58880 of 132797

I paid some 1997 state taxes (that I overlooked back in 1997)as well as the accrued interest in the year 2001. Do I get to add both the taxes and interest to federal Schedule A (Itemized Deductions) or just the taxes.

Just the taxes. Interest on late tax payments is non-deductible personal interest. Any penalties are also not deductible.

Also will this be applied to line 5 (State and local income taxes) or under line 8 other taxes? I am hesitant to add it to line 5 as it will not match my W-2 form.

Use line 5. It's not compared to your W2. Anyone who has a balance due with their state return would put that balance on this line, so it is quite common for it to not match a W2.

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