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Level 2
Jan 31, 2022 1:42 AM UTC
Solved

Tax Advice

I paid quarterly estimates to the State of Michigan in 2019 based on 2018 tax return. I ended up not owing anything in 2019. The amount I paid was carried over to 2020 and again I owed nothing. I requested to have the money returned and I received it back in 2021. Since I owed no money in 2019 or 2020, is the estimate I paid taxable on my federal return?

    Bsch4477Answer
    Level 15
    Jan 31, 2022 2:48 AM UTC

    It would only be taxed if the amounts were used to increase itemized deductions in the year it was first paid to the state. 

    2 replies

    Bsch4477Level 15Answer
    Level 15
    Jan 31, 2022 2:48 AM UTC

    It would only be taxed if the amounts were used to increase itemized deductions in the year it was first paid to the state. 

    lkvanAuthor
    Level 2
    Jan 31, 2022 10:56 PM UTC

    Thank you!