I paid state estimated taxes (Colorado) in 2nd quarter 2023 due to the sale of a second home to account for the capital gains. In completing my return now, I've realized that I grossly overpaid the state estimated taxes (paid a total of $10k estimated state taxes, overpaying by $6300). I did not pay estimated fed taxes.
When I enter my estimated state tax payments in Turbotax ($10k), it results in a $6300 refund from CO and lowers my federal liability by around $1000. This brings me to the state/local tax maximum deduction of $10k ($5900 of state income taxes withheld + $10k of estimated taxes paid by me = $15900 total)
My question is, will this have repercussions when I do my taxes next year due to the large refund I'm getting from CO? In other words, it lowered my AGI by $4100 this year due to hitting the max (brought me from a $5900 deduction to $10k), but will it now increase my AGI next year by $6300 (the CO refund amount)? I'd appreciate any guidance!
