2023 Estimated Taxes Paid in 2024

[MATY]

Why is TurboTax asking me "How much of your 2023 estimated state taxes did you pay in 2024?" Is it asking about the fourth quarter (2023) payment that was paid before Jan. 9th 2024 deadline or payments that possibly were made after the deadline?

[KrisD15]

The fourth installment paid and due in January 2024

[AHHHH-taxes]

Did you ever figure this out? Got the same question. Thanks

[AHHHH-taxes]

Hello. Why would there be such a specific question though?  If we input our estimated taxes for each quarter, wouldnt it be redundant to have to list out how much we paid in the last quarter? I dont understand the purpose of this. Thank you.

[KeshaH]

When you enter your state estimated taxes paid, there are two places those payments can go on your tax return.

1. On your state tax return as a credit against your tax liability. 2023 estimated tax & extension payments made in 2024 would be included on your 2023 tax return because that is the year the payments are applied to.

2. On your federal tax return as an itemized deduction. These tax payments are deducted when paid, so 2023 estimated tax & extension payments would be included on your 2024 federal tax return because that is the year the payments were made.

TurboTax asks the question about 2023 payments made in 2024 so that these payments can be included in your 2024 itemized deduction, if applicable.

[AHHHH-taxes]

Thank you. So seeing I am not itemizing, it could only be listed on my state tax return.

I did input my estimated taxes for the 2024 year per quarter successfully on turbo tax. The only stumbling block I am running into is the question about "how much of my 2023 estimated tax did I pay in 2024". I just cant seem to understand it. So seeing I claimed the $600 estimated tax on my 2023 taxes, should I just leave this blank?

Sorry, I get it but it takes a little time for me to fully grasp.

[KrisD15]

Estimated state tax paid function two ways on the tax returns.

For the FEDERAL return, when Itemizing Deductions and claiming state tax paid, it must match the tax year of the return. 

If the 2024 fourth quarter estimated state tax payment was made in 2024, it would count towards the itemized deduction on the tax year 2024 federal return.

If the 2024 fourth quarter estimated state tax payment was made in January 2025, it would not count towards the itemized deduction claimed on the tax year 2024 federal return. (it could then be claimed on the 2025 federal return) 

The same is true for the tax year 2023 state payments. 

If the 2023 fourth quarter estimated state tax payment was made in 2023, it would have counted towards the itemized deduction on the tax year 2023 federal return.

If the 2023 fourth quarter estimated state tax payment was made in January 2024, it would not have counted towards the itemized deduction claimed on the tax year 2023 federal return. (it would then be claimed on the 2024 federal return) 

This is why your 2024 tax return is asking about 2023 state tax payments. 

For the state return, estimated state tax is credited to the tax year you designate on the payment. 

[AHHHH-taxes]

WOW! Thank you for such a detailed answer. Please correct me if I wrong, but if I am understanding correctly, since I did not itemize in 2023 and have already claimed the $600 state estimated tax on my 2023 taxes, I should leave the question 'How much of your 2023 estimated state tax did you pay in 2024?' blank?

[RobertB4444]

That is correct.

@AHHHH-taxes 

[CkGee]

Sorry, I thought I was following your explanation till the very end when you highlighted the $100? that was paid in 2025? so how does it fulfill the question asked about estimated tax of 2023 paid  in 2024? I thought it would be literally all the payments done in calendar year 2024 which exclude the $100 paid in 2025.  Maybe the wording of Turbotax question is the issue here? or maybe I'm just still not getting it. Thank you for any further clarifications.

[VolvoGirl]

It must be a different $100 amounts.  She should have used a different amounts in the  example and screen shots to tell them apart.  It literally is asking only about a 2023 state estimated payment made in January 2024, not the 2024 estimated payment in January 2025.   You need to enter both in their respective places for several things, like to determine if a state refund you got will be taxable on the federal return.  

[taylor1722]

I have a similar question regarding how the questions are asked in turbo tax:

1.  There is a place where turbo tax asks about state estimated taxes paid in 2024. got that.

2.  then there is a place to enter 2023 estimated taxes paid in 2024 - did that. 

3.  then a place to enter 2023 refund that was applieds to 2024 estimated taxes - did that. 

4.  then there is a section "other income taxes paid in 2024.  One of the questions is "Balance due on 2023 state taxes paid in 2024"

• for me, there was no balance due as i was getting a refund. 
• however, when you go to that section, the question is "how much of 2023 taxes did i pay in 2024?"  
  • that is the same question as #2. above.  but i shouldn't be entering the same amount again, correct? 
  • makes a huge difference in how much i owe Fed and State if i leave it at $0 vs. the amount that I did pay in 2024. 

[ThomasM125]

The question about 2023 taxes paid in 2024 if referring to the balance of tax due from your 2023 tax return that was paid in 2024.  Since you had a refund, you would answer $0 to that question.

@taylor1722

[taylor1722]

thank you!  that is were i landed even though the subquestion implied differently.  

My state customer service person in Maryland said i should include my 4th quarter payment also even though i paid it in January 2025.  I am now thinking she was talking about on State form even though i was going through the turbo tax questions. I have to check on that again.  from now on, i will just make my estimated 4th quarter payment in December of the tax year!