For tax year 2026 (i.e. 2027 filing), let's say the federal standard deduction is $32,200 and Oklahoma deduction is 12,700 for MFJ. Oklahoma requires you to take standard deduction for state if you take it on federal.
I'm forecasting my itemizations to come in around $30k for federal, $28k for state, providing incentive to itemize even though I'm below the federal STD deduction.
If I boost my state income tax withholdings this year by about $2k, is that a workaround to allow me to get full benefit on both levels?
My thought is the 1099G worksheet won't lower my deduction below the federal STD deduction, effectively allowing me to take the STD deduction on federal, itemizing the state, all for a small loan to Oklahoma in my increased withholdings.
