"A January estimated tax payment will be applied against prior year tax. So a payment of 2020 estimated state tax in January will be deducted from 2020 state tax owed on the 2020 state tax return but will be a 2021 federal tax deduction."
I didn't know that. Thanks!
Where do you make such deductions - only if you itemize deductions in Schedule A? If you don't itemize, guess you won't be able to deduct?
Also, how about the estimated payments for the other 3 quarters within the year of the 2021, can they be deducted from federal in 2021?
I'm just learning about state tax deduction, so this is fairly new to me. I appreciate your time in this!
Thank you!
