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troubleshooter75
Level 2

Is EIC a payment? - near the end of Federal Turbo Tax asked for state payments made in 2017; why? and should I have put the state EIC there as a 'payment'?(what's it for

To clarify, this was for the federal return preparing, and it wanted any payments sent for state.

Oh, it was payments made in 2018 for 2017 state taxes, IIRC.

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rjs
Level 15
Level 15

Is EIC a payment? - near the end of Federal Turbo Tax asked for state payments made in 2017; why? and should I have put the state EIC there as a 'payment'?(what's it for

Depending on the particular state, the state EIC might be treated on the state tax return as if it was a payment, but it is not a payment that you made. When TurboTax asks for state payments, do not include the state EIC. TurboTax just wants to know if you paid a balance due with your state tax return, or made state estimated tax payments, or a payment with a state extension. Include any state income tax payments that you made in 2018. Normally any state income tax payments you made in 2018 would be for 2017 state tax, but if you made a state payment in 2018 for an earlier year, include that too.


The reason it's asking is that, if you claim itemized deductions on your 2018 federal tax return, any state income tax payments that you made in 2018 could be included in your deduction for state and local income taxes.

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4 Replies
xmasbaby0
Level 15

Is EIC a payment? - near the end of Federal Turbo Tax asked for state payments made in 2017; why? and should I have put the state EIC there as a 'payment'?(what's it for

EIC is earned income credit.  It is not a payment you made to the IRS or the state.  EIC is money your received from the IRS or the state.  It would have been part of your tax refund.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
rjs
Level 15
Level 15

Is EIC a payment? - near the end of Federal Turbo Tax asked for state payments made in 2017; why? and should I have put the state EIC there as a 'payment'?(what's it for

Depending on the particular state, the state EIC might be treated on the state tax return as if it was a payment, but it is not a payment that you made. When TurboTax asks for state payments, do not include the state EIC. TurboTax just wants to know if you paid a balance due with your state tax return, or made state estimated tax payments, or a payment with a state extension. Include any state income tax payments that you made in 2018. Normally any state income tax payments you made in 2018 would be for 2017 state tax, but if you made a state payment in 2018 for an earlier year, include that too.


The reason it's asking is that, if you claim itemized deductions on your 2018 federal tax return, any state income tax payments that you made in 2018 could be included in your deduction for state and local income taxes.

troubleshooter75
Level 2

Is EIC a payment? - near the end of Federal Turbo Tax asked for state payments made in 2017; why? and should I have put the state EIC there as a 'payment'?(what's it for

THANK YOU! rjs;

That is correct; it was the TurboTax Federal section that asked that, and I could not see where it was going to use it (I did not see any 1040 lines related to it).

So, it would have gone in the itemization form (form A?); Aha...

 

I will not be itemizing, as my standard deduction will be higher, so now I understand!

What had confused me was: since it is a refundable credit, I didn't know if I was wrong when I included it as a 'payment' made to state tax in 2018.

Thanks for clarifying.

Since TurboTax is not going to itemize my deductions, I see it will be irrelevant, but I will go back and remove the entry anyway, if it lets me...

Thanks again.

Mr K L

 

troubleshooter75
Level 2

Is EIC a payment? - near the end of Federal Turbo Tax asked for state payments made in 2017; why? and should I have put the state EIC there as a 'payment'?(what's it for

Thank you xmasbaby0;

I knew what EIC is, I got confused about the purpose of the TurboTax question during the federal part and it wanted the state payments made.

What I did not know is if EIC was considered as a 'payment' made in 2018, since mathematically, it is treated the same as a payment made physically by me, in the tax computation lines.

I had trouble phrasing the question clearly.  (rjs figured out what I meant to ask!)

Thanks to you both for helping me!

Mr K L

 

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