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Level 2
January 31, 2022
Solved

Tax Advice

  • January 31, 2022
  • 2 replies
  • 17 views

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?

    Best answer by Bsch4477

    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
    January 31, 2022

    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
    January 31, 2022

    Thank you!