how to figure state income tax owed if unknown when completing federal tax form

[poinsot]

Hello. This is the first year I am retired. I didn't have state tax deducted from our SS payments, pension payments or withdrawals. Now I am doing my federal taxes and I need to deduct state income tax which is an unknown. I could switch over and do my state taxes to get the amount but don't I need to complete my federal tax form to use the information on the subsequent state tax form. What is the workaround for this ??  How can I do one without the other ?

Thank you. 

[xmasbaby0]

You do not have to do all that fancy footwork.   The software does it for you.   All you need to do is enter your SSA1099 exactly as it appears in the federal software.  Information flows to the state from the federal return, and the state software will follow all of the state's tax laws regarding taxability of your SS. 

Go to Federal> Wages & Income>>Retirement Plans and Social Security  (SSA1099 and 1099RRB) to enter your SSA1099.

And there are only 13 states that tax Social Security---you have not mentioned what state you are in.

States that tax Social Security benefits:

CO, CT, KS, MN, MO, MT, NB, NM, ND, RI, UT, VT, WV

These states offer varying degrees of income exemptions, but four mirror the federal tax schedule: MN, ND,VT, and WV

If you have a 1099R for other retirement income

To enter your retirement income, Go to  Federal> Wages and Income>Retirement Plans and Social Security>IRA  401 k) Pension Plan Withdrawals to enter your 1099R.

[SteamTrain]

No...you don't need to do that.

State taxes that were not withheld or paid during the 2020 calendar year (1Jan to 31 Dec) in the first place, cannot/are not to be used as a deduction in your Federal tax return for 2020.

So you will just prepare and file as you normally do....BUT...any taxes that you pay to your state when you file 2020 state taxes now (during 2021)....that state balance due payment can be used next spring as a 2021 Federal income deduction, along with any state withholding you may start doing now.

All this assumes you have enough total deductions such that Itemized Deductions can be used.

_____________________________

SS Admin doesn't do state withholding, but your pension/401k/IRA administrators usually can/will allow it to be set up.

[poinsot]

Hello SteamTrain,

Thank you so much for the quick reply which was so helpful. I can now finish my return. I really had got myself into a chicken/egg situation that boggled my mind. Now I know how to proceed. Thank you again. 

[poinsot]

Thank you Christmas Baby for the quick and informative reply. This is my first full year as a retiree. I assumed SS would be taxed by the state so I'm really glad to find out that my state doesn't tax SS income. You've been a big help to me. 

W