Filling out Form 2210 page 3 Schedule AI
Line 4 is for itemized deductions. Does anyone know how to handle state and local income taxes which are capped at $10,000?
Say for example I had $3000 in state, local and property taxes in the first three months of the year. The "annualization" factor is 4 which would make that part of my annual deductions $12,000. I know it's capped at $10,000 so am I supposed to only count $2,500? The next quarter is actually only two months. Would I cap myself at $1,666,67 (2/12 *10,000). No guidance on the IRS website.
