This year we are itemizing our taxes for the first time and we discovered that we can include the State taxes paid in 2025 for the year 2024 as a deduction.
However, we are not sure about what the best way to do this is with Turbotax. We clicked on " Estimates and Other taxes paid " in the deductions and credits summary page and then there are 3 options that might work for us:
1) 2024 state estimated taxes paid in 2025
2) 2024 refund applied to 2025 state taxes
3) Balance due on your 2024 state taxes paid in 2025
We are inclined to select 3) as we simply paid the taxes we calculated we owed for year 2024 in 2025, but we wanted to make sure. Also because we don't really understand when cases 1) and 2) would apply. For example, what does it mean estimated taxes and why would someone pay the estimated ones rather than the balance due, and isn't a refund money you receive and not give, why would someone pay a refund.
Does anybody know if 3) is the correct one or if we should select a different option? Taxes we owe changed based on the selection, so we don't want to make a mistake.
