I filled out the Tax Payments worksheet with all of my estimated state and federal tax payments for 2023. However the final (and largest) estimated state payment is not included in the total that is applied on Schedule A. I see the correct total of estimated payments on the worksheet and line 20 even includes payments from 1099-R.
What happened to payment 4 of state taxes?
Yeah, it's critical to enter your exact payment dates, and do not just let the default deadline dates remain.
IF a payment for "state" 2023 estimated taxes, is actually paid during January of 2024, then it does get "credited" for 2023 in the state tax return....but for the Federal "deduction" for state taxes paid, the state January payment isn't allowed as a Federal income deduction until 2024 taxes are prepared.
Thus, some of us always make our final Q4 state estimated payment during December......though deciding which month to use can depend on each one's personal tax situation.
When did you pay it? If you just paid it in Jan 2024 it goes on your 2024 return next year. Did you enter the right date on it when you entered it? Go back and double check you filled out the date and didn't use the default date of Jan 15, 2024
To enter Federal or State Estimated Taxes Paid, including a state estimated payment made in January for the prior year, go to
Federal on left or at top. Personal (Home & Business)
Deductions and Credits at top
Then scroll way down to Estimates and Other Taxes Paid
Estimated - click the Start or Update button
That has not changed anything.
f I change the third payment from 0 to the value of the fourth payment and clear the fourth payment, the total is updated correctly on Schedule A.
Yeah, it's critical to enter your exact payment dates, and do not just let the default deadline dates remain.
IF a payment for "state" 2023 estimated taxes, is actually paid during January of 2024, then it does get "credited" for 2023 in the state tax return....but for the Federal "deduction" for state taxes paid, the state January payment isn't allowed as a Federal income deduction until 2024 taxes are prepared.
Thus, some of us always make our final Q4 state estimated payment during December......though deciding which month to use can depend on each one's personal tax situation.
I wondered about that so I tried changing the date for the fourth payment to 12/26/2023 before I posted this question. The fourth payment is still not credited to Schedule A.
I just tried it. Yes, If I type in the right date in 2023 in the 4th qtr date paid box it does go to schedule A. I bet you are in California too. So when you entered it in the 3qtr box did you change the date to December?
How much are your other state tax deductions like property tax and 2022 state tax due? There is a max of $10,000 (5,000 MFS) deductible for state taxes paid.
When I moved the payment back to the third quarter it used a date much earlier in 2023, probably September.
I am in California and when the payment is credited correctly on Schedule A I do exceed the maximum of $10,000. However without that payment I am several thousand dollars below the $10,000 limit.