Federal Estimated taxes paid - transfer to Montana state taxes

[Montwalleye]

I completed and reviewed my Federal taxes and am completing my Montana income taxes. My problem is that I made $4,000 in estimated federal tax payments for  2020 but I made one by accident in 2021 January for $800.  The figure that transfers to my Montana return is only the $3,200 (or those actually made in calendar year 2020). According to the state, I should claim all $4,000 I made for the figure on my Montana return. I cannot figure out a way to correct this situation in Turbo Tax 

[SteamTrain]

The amount actually paid to the Feds in 2020 is still the correct number.

But

You can add in any Fed estimate you made for 2019 in Jan of 2020

....and also any Federal balance due for 2019 (or any other year) that you actually paid during 2020.

______________________

Most (or maybe all) of the few States that allow a Federal taxes paid income deduction, also work this way.

Certainly the instructions MT provides:

________________________

Line 4 Federal Income Tax.............. Enter the total amount of federal income tax paid during 2020.

...and...

4b.  Enter the amount of federal estimated income tax payments;

___________________________

...could leave some room for interpretation...but I don't think so.

You could always call the MT tax people and ask for clarification....there should be a number on their website.

[ErnieS0]

Montana does not allow you to claim a fourth quarter federal estimated tax payment made in 2021. 

The instructions for Line 4 say "Enter the total amount of federal income taxes paid in 2020." See page 25 of the 2020 Montana Form 2 instructions. You can claim the 2019 fourth quarter federal payment made in 2020.

TurboTax includes a space for that in the Montana section on the screen Federal Income Tax Paid.

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[Montwalleye]

Thank You- Just to be clear I made all my federal quarterly estimated payments in 2020 (4 each $3,200 total) . When I went to make my first estimated payment for 2021 I coded it for 2020 by mistake. This means I made 5 each 2020 estimated payments (total of $4,000). So, if I read your answer and page 25 correctly I will have to wait until 2022 when I pay 2021 taxes to claim the payment (even though it wasn't a fourth quarter payment for 2020) ?  When I called the state they said I should report all my 2020  federal estimated payments (which total $4,000)  instead of the $3,200 which carried over to the Turbo Tax state return.   

[SteamTrain]

Well...they may have been confused about whether that 5th payment was actuality made in year 2020 or in year 2021.

I don't know what else to say...other than maybe call MT again and see what another agent says, and specify again you made a 2020 Federal estimated payment in 2021...or seek a local MT tax preparer for their advice. 

None of us helpers here actually lives in or prepares MT taxes  (don't think so).....just interpret what we read.

[Montwalleye]

Just one more add on question. Will the IRS allow me to change the tax year on that fifth payment? I tried to call them and they said due to high call volume they couldn't answer my questions. That would solve my Turbo Tax aspect and just mean my 2020 refund wouldn't be as much.

[SteamTrain]

That's something I just don't know. 

It would solve your apparent conundrum...but you can keep calling the IRS until you get an answer (yes, frustrating).  MT has extended their deadline to 17 May too.

[Montwalleye]

I finally got through to the IRS, I can't change the payment I made in January for 2020 to a 2021 payment. I am considering finishing my state taxes on Turbo Tax and then redoing them manually and adding all the payments into the equation to see where it ends up , but I'm not sure it is worth the pain. Then, I won't have the e file option either. Another factor is the state may reject the fifth payment because it was made in 2021 even though one state agent said to include them all.