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Get your taxes done using TurboTax
The state is Oregon. My main question is what can I deduct in local taxes on the state return. I got the standard deduction on my Federal Return.
In 2024 I. paid about 1,200 in local taxes in city and county taxes for 2023, and paid estimated taxes. of about 2,500 in estimated taxes for 2024 also in April of 2024. If my actual local taxes are about 1,500 what can I use as a deduction on my state taxes? Assuming I can deduct the taxes paid for 2023 of 1,200, it would be either 1,200 + 2,500 or 1,200 +1,500 (estimated taxes are more than actual so I could deduct all of the actual?
That is my main question and the most important one for this year.
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If it is the estimated taxes, and I carry over the 1,000 I assume I don't need to do anything on my state taxes next year except for any additional payment I might make in estimated taxes. If I don't carry it over, I guess it would be a negative amount against any additional tax payments I make?
If, instead it is actual taxes up to estimated taxes paid (which would be all of it this year) That would be simple, the carryover would be deductible next year if I carry it over?
Except the (actual) local tax for 2024 is based on Income for 2024 from the state tax form minus deductions, including the actual local taxes (if that is what is used). So I can't do the local until I subtract it from the state!
local tax = local tax rate (2.5%) x (income - local tax ), or .975 x local tax = 2.5% income (before deduction of local tax for 2024 but after other deductions) so not quite as circular as I first thought still more complicated
than it should be.
Continue solving for actual local tax = .025/.975 * income after all deductions except the local ones)
Turbo tax gets 3003 but that isn't 1,200 + 1,500 or 1,200 +2,500??
These aren't my exact numbers.