Does making a tax payment correction in 2018 for a past tax return affect my 2018 tax return at all?

Jan 11, 2019

I received a CP-2000 notice in November 2018 for my 2016 tax return. It was for my education tax credit, and I had to pay about $2,100. I was able to pay it in full in one single payment. I am wondering how this will affect my 2018 tax return, and if I need to write that information in the "federal taxes paid" box?

The payment of the additional $2,100 in 2016 taxes will have no effect on your 2018 tax return. Federal tax payments are a nondeductible event, and only current year tax payments count toward your current tax balance. If, for some reason, your state tax balance was adjusted as a result of this or any other tax notice, then it would be factored in your itemized deductions.

For more resources, check out PICPA’s Money & Life Tips, Ask a CPA, or CPA Locator.

Answered by: Eric S. MacCollum, CPA, is a principal with Hudak and Company in Lemoyne, Pa.

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