@VolvoGirl @xmasbaby0 Thank you for your reply, very much appreciate it.
I believe I understand both of your replies, though I'm still bit confused, so let me pose my question another way..
I'm trying to see if I can save on my 2025 fed taxes. I did not get any refund from the state in 2025. With that said, here's my current situation on my Georgia state taxes:
- So far ( Dec 12) I have had state taxes withheld on my pension payout of $2K and estimated payments made to the state by 3Q (Sep 15) of $1k. A total of about $3k. I have not made any estimated payment to the state for 4Q yet. Per my estimate I will owe an additional $17K (total of $20K) at the time of filling my 2025 return.
- Since I will end up paying $20K for 2025 state taxes and if I can take that "deduction" on my federal, I would be better of with itemizing my federal instead of taking standard deduction. I am 65+, retired and no other deduction, I estimate my standard deduction will be $17+K vs. $20K+ if I took itemized deduction.
- First, are my assumption above correct? and what do I need to do to be able to take that larger itemized fed deduction for 2025. Would it help if I made the remaining $17K payment to the state as estimated payment by the year end Dec 31 or by Jan 15?
- Is there anything I can do to minimize my 2025 fed taxes in view of the $20K state tax liability for 2025?
Thanks again!
