When you enter your state estimated taxes paid, there are two places those payments can go on your tax return.
1. On your state tax return as a credit against your tax liability. 2023 estimated tax & extension payments made in 2024 would be included on your 2023 tax return because that is the year the payments are applied to.
2. On your federal tax return as an itemized deduction. These tax payments are deducted when paid, so 2023 estimated tax & extension payments would be included on your 2024 federal tax return because that is the year the payments were made.
TurboTax asks the question about 2023 payments made in 2024 so that these payments can be included in your 2024 itemized deduction, if applicable.
