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Posted by Steve Pope on December 30, 2006, 2:48 pm
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I'm in a situation where the amount I paid California in
2006 estimated tax payments during 2006 is considerably
more than my actual tax liability.
Is it possible to not claim the excess amount paid on
Schedule A, such that the refund received in 2007 becomes
not federally taxable? If not, are there any other
strategies? (Not itemizing in 2006 seems one approach.)
Thanks,
Steve
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Posted by Phil Marti on December 31, 2006, 11:50 pm
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> I'm in a situation where the amount I paid California in
> 2006 estimated tax payments during 2006 is considerably
> more than my actual tax liability.
>
> Is it possible to not claim the excess amount paid on
> Schedule A, such that the refund received in 2007 becomes
> not federally taxable? If not, are there any other
> strategies? (Not itemizing in 2006 seems one approach.)
Claiming only part of your payment on Schedule A won't help.
The only thing that would make the refund nontaxable would
be not itemizing on 2007. This doesn't make much sense to
me off the top of my head, but you could always file 2006
with the standard deduction, wait until the 2007 dust
settles, and then amend 2006 to itemize if it turns out that
was the way to go.
--
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 Paul Thomas on December 31, 2006, 11:50 pm
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> I'm in a situation where the amount I paid California in
> 2006 estimated tax payments during 2006 is considerably
> more than my actual tax liability.
>
> Is it possible to not claim the excess amount paid on
> Schedule A, such that the refund received in 2007 becomes
> not federally taxable?
In this case, you are free to not claim as as itemized
deduction, all that was withheld/paid.
--
Paul A. Thomas, CPA
Athens, Georgia
<< ======================================================= >>
<< 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 Dick Weaver on January 1, 2007, 12:09 am
Please log in for more thread options Steve Pope wrote:
> I'm in a situation where the amount I paid California in
> 2006 estimated tax payments during 2006 is considerably
> more than my actual tax liability.
> Is it possible to not claim the excess amount paid on
> Schedule A, such that the refund received in 2007 becomes
> not federally taxable?
Provided only that not claiming the deduction does not lower
your federal taxes (think AMT, for an example) then you are
not required to claim the deduction.
dick w
<< ======================================================= >>
<< 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 mytax on January 1, 2007, 12:09 am
Please log in for more thread options Steve Pope wrote:
> I'm in a situation where the amount I paid California in
> 2006 estimated tax payments during 2006 is considerably
> more than my actual tax liability.
>
> Is it possible to not claim the excess amount paid on
> Schedule A, such that the refund received in 2007 becomes
> not federally taxable? If not, are there any other
> strategies? (Not itemizing in 2006 seems one approach.)
Steve, you may choose to use the sales tax deduction which
will result in no income reporting of the refund of state
taxes. You may also deduct only the taxes actually paid for
state taxes, and choose to allow the state to keep the
refund for the next year taxes as well.
<< ======================================================= >>
<< 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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