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Posted by Kurt Ullman on March 23, 2007, 6:31 am
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this is probably a REALLY dumb question, but TaxCut asks me
if I want to deduct "State Taxes sent with 2006 return".
Sounds like they might only want taxes paid in addition to
withholding (thus sent with return). So, did TaxCut confuse
me with their wording or can I only deduct taxes I sent that
were above what was withheld?
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<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
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Posted by Phil Marti on March 25, 2007, 11:48 am
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> this is probably a REALLY dumb question, but TaxCut asks me
> if I want to deduct "State Taxes sent with 2006 return".
Are you sure it's asking you about the 2006 state return?
It should be asking about your 2005 state return.
> Sounds like they might only want taxes paid in addition to
> withholding (thus sent with return). So, did TaxCut confuse
> me with their wording or can I only deduct taxes I sent that
> were above what was withheld?
No. For your 2006 Federal Schedule A your state income tax
deduction is the total of state income tax withheld during
2006 plus anything else you paid during 2006. The reason
TaxCut isn't asking you about the withholding is that it
will pick that up off your W-2.
--
Phil Marti
Clarksburg, MD
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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Posted by Rich Carreiro on March 25, 2007, 11:48 am
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> this is probably a REALLY dumb question, but TaxCut asks me
> if I want to deduct "State Taxes sent with 2006 return".
> Sounds like they might only want taxes paid in addition to
> withholding (thus sent with return). So, did TaxCut confuse
> me with their wording or can I only deduct taxes I sent that
> were above what was withheld?
When a tax program asks that, they mean the balance due (if
any) you paid with your state return when you filed it.
This is because the vast majority of taxpayers operate on a
calendar year schedule, which means that on your 2006 return
you can deduct state taxes paid in calendar year 2006.
Those taxes will be the taxes withheld from your *2006*
paychecks, any state estimates paid in *2006* towards your
*2006* return, but also the balance due on your *2005*
return that was paid in *2006*.
Likewise, the balance due on your *2006* state return will
be deductible on your federal *2007* return (because you
paid that balance due in 2007).
--
Rich Carreiro rlcarr@animato.arlington.ma.us
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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Posted by bono9763@yahoo.com on March 25, 2007, 11:48 am
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> this is probably a REALLY dumb question, but TaxCut asks me
> if I want to deduct "State Taxes sent with 2006 return".
> Sounds like they might only want taxes paid in addition to
> withholding (thus sent with return). So, did TaxCut confuse
> me with their wording or can I only deduct taxes I sent that
> were above what was withheld?
It's asking you if you made a payment when you filed your
2005 tax return (in 2006) and if so, it will add that
payment to your withholding for 2006 to get the total amount
of state income tax paid in 2006.
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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Posted by John D. Goulden on March 25, 2007, 11:48 am
Please log in for more thread options > this is probably a REALLY dumb question, but TaxCut asks me
> if I want to deduct "State Taxes sent with 2006 return".
> Sounds like they might only want taxes paid in addition to
> withholding (thus sent with return). So, did TaxCut confuse
> me with their wording or can I only deduct taxes I sent that
> were above what was withheld?
If you itemize, you can deduct ALL state income taxes paid
during 2006. That includes both your withholding for 2006
and what you had to pay above and beyond your 2005 state tax
withholding (that is, 2005 state tax balance due paid during
2006). OTOH if you got a state refund in 2006 and itemized
in 2005, that refund becomes taxable income in 2006 (you
deducted it as withholding during 2005, but then got it back
in 2006 and must un-deduct it). If you owe the state for
2006, you will get to deduct it in 2007.
--
John D. Goulden
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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