Georgia provides a tax credit for Qualified Educational Expenses ($2.5K married filing joint). I understand I cannot take a federal charitable contribution deduction when a state tax credit like this is allowed. However,
- Can I enter the contribution to the Georgia Qualified Educational Expense as part of the Georgia Estimated Payments in the Federal Tax Payments worksheet? I understand there is a SALT limit of $10K but can I “use” the QEE $2.5K “instead” of the W-2 state tax withholding in case this is over $10K (I seemed to have overpaid on my state tax bill)?
- If this is not possible, it seems that is best to underestimate the state tax withholding throughout the year so at the end of the year, your state tax withholding plus your QEE payment adds up to $10K, especially if your final state tax bill is also around $10K. Do you agree or have a different view?
