Submitted By: Anne
Answered: August 5, 2014 8:30 am

Are the federal income taxes I paid for 2013 when I filed my return in April 2014 deductible on my 2014 return?

Federal income taxes are not deductible. Similarly, you cannot deduct your payment of FICA on wages or the additional Medicare taxes on earned income (0.9% over your threshold amount) and net investment income (3.8% if your adjusted gross income is over a threshold amount). However, the 2014 payment of 2013 federal income taxes is credited to your 2013 return; any excess payment can be refunded to you or applied toward your 2014 federal tax liability.

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Tax Glossary

Straddle

Taking an offsetting investment position to reduce the risk of loss in a similar investment.

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