How to handle my last estimated fed and state tax payments made 1/5/2018?
Are these payments considered as tax payments for my 2017 return even though paid in 2018? Will this last payment be utilized by TT and be included in the amount of tax I paid during the 2017 calendar year (along with my other 3 estimated payments)? If yes can you provide steps for fed & state estimated payments,so these 2018 payments are handled correctly?
Yes. All estimated payments FOR 2017 (even made in 2018) go on your 2017 tax returns both federal and state.
The confusing part is to get a federal itemized tax deduction on schedule A for state taxes paid you can only deduct the actual payments made in 2017. That's why people pay their 4th quarter state estimate by Dec 31 so they can get a federal deduction for it. If you take the Standard Deduction then it doesn't matter when you pay the state estimate.
The taxes you paid on 1/5/2018 will be considered as tax payments for your 2017 return, as your fourth quarter estimated tax payment along with your other 3 estimated tax payments.
Your state and local tax payments are automatically transferred to your state return.
You will enter any federal, state or local estimated tax payments that you have made for 2017 under Estimates in the section entitled Estimates and Other Taxes Paid. This can be found under the Federal Taxes or Personal tab depending on which TurboTax product you choose.