topic Can you overpay state income tax to get bigger deduction? in State tax filing

Can you overpay state income tax to get bigger deduction?

jay6 — Mon, 03 Jun 2019 20:16:24 GMT

Can you overpay 2017 state tax now to get a bigger Federal itemized deduction for year 2017? Of course, you will get refund in 2018 and these refund will be added to 2018 income, but 2018 tax rate is lower. So you gain.

I suppose today you can pay 2017 tax directly on state's web site.

I know you cannot prepay 2018 state tax return. But I am asking about overpaying 2017 state tax.

I also know you cannot overpay too much, because if you take too much itemized deduction, AMT get kicked in, and you lose the itemized deduction.

Thanks.

Ok ... technically you can do it but it is against the la...

Critter — Mon, 03 Jun 2019 20:16:25 GMT

Ok ... technically you can do it but it is against the law if you do so willfully knowing it is not allowed and if caught you could face penalties & interest.

https://www.irs.gov/newsroom/irs-advisory-prepaid-real-property-taxes-may-be-deductible-in-2017-if-assessed-and-paid-in-2017">https://www.irs.gov/newsroom/irs-advisory-prepaid-real-property-taxes-may-be-deductible-in-2017-if-assessed-and-paid-in-2017</a>