Another bug re state estimated taxes

5 replies
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I entered a total of $15k of paid NY estimated taxes. When I look at Schedule A, State taxes are $6800.

Another bug on desktop premier. TurboTax expert please advise. Thanks

DMarkM1

Alumni - Intuit

Line 5a on the form 1040, schedule A only includes amounts paid in the tax year. If you entered any of your NY estimated tax payments with dates in 2023, they will not show on the schedule A. Usually the 4th quarter payment is not in the tax year.

Next year you would enter a "2022 state estimated tax payment made in 2023." Along those lines if you "made a 2021 estimated tax payment in 2022" you would enter that amount on this year's return.

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cptt21Author

Level 2

The estimated NY state tax payment for Q4 2022 was made on 1/13/23. It should be counted as it always has been in NY State taxes paid on the federal return. Of course, if take standard deduction for 2022 federal return, then it does not matter because there will be no Schedule A and proper reporting is not required.
However, How do I enter The estimated NY state tax payment for Q4 2022 was made on 1/13/23 in TurboTax. If not, I will have significantly underpayed state taxes and be subject to fines.

SteamTrain

Level 15

@cptt21

Sorry, but he's right...The state estimated payment you made on 13 January 2023....will NOT be included on the Federal Schedule A for 2022 taxes. It will be included as a 2022 NY state tax payment credit for your NY forms, though...as it should be.

BUT

The Jan payment you made to NY can be included as a potential Federal deduction in your 2023 Federal taxes that you will file in 2024.

AND Also

If you made a 4th Qtr Estimated payment to NY in Jan of 2022 (for your 2021 NY taxes), that could be included now as a potential Federal 2022 deduction.

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Only state taxes actually paid during 1 Jan-to-31 Dec of 2022 are allowed to be included in Federal state taxes paid deductions. It has always been the rule for many-many years. OF course, now there is a 10,000 State and local tax deduction limit that might be in plat..that is relatively new for the past few years.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

rborovoy

Level 2

I got the same bug!

Does Turbotax not ever fix bugs? Help?

SteamTrain

Level 15

@rborovoy

Explain what you mean.

What exactly is this bug?

1) When did you actually pay the 4th qtr state estimated payment?....the exact date.

2) And when (what tax year) do you expect it to show up as a Federal itemized deduction?

As we've already indicated.....it was not a bug last year, and we have had no evidence that there is a bug in the 2023 tax software either. (A t least no valid complaints with thousands of people posting in this forum, so far this year. Doesn't mean you won't be the first, but it's really unlikely)

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____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*