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Posted by hawaiianengineer on April 14, 2008, 7:31 pm
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TY2007 was the first year that I paid estimated taxes, so I am a
little confused by the rules. I have two questions:
1) Can Q4, FEDERAL, estimated taxes paid in 2008 but before January 15
be applied to my 2007 federal return?
2) Am I correct in assuming that Q4, STATE (I am a California
resident), estimated taxes paid in 2008 but before January 15 CANNOT
be applied to my 2007 state return (it must be applied to my 2008
return)?
Extra credit: If the answers to both #1 and #2 are correct, why do the
federal and state have different rules??? #2 caught me by surprise
(assuming it's true, of course).
--
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<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
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Posted by Ernie Klein on April 14, 2008, 8:30 pm
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In article
hawaiianengineer@yahoo.com wrote:
> TY2007 was the first year that I paid estimated taxes, so I am a
> little confused by the rules. I have two questions:
>
> 1) Can Q4, FEDERAL, estimated taxes paid in 2008 but before January 15
> be applied to my 2007 federal return?
>
For 2007 estimated tax payments were due on 4/16/07, 6/15/07, 9/15/07,
and 1/15/08. All 4 payments are/were for your _2007_ taxes.
> 2) Am I correct in assuming that Q4, STATE (I am a California
> resident), estimated taxes paid in 2008 but before January 15 CANNOT
> be applied to my 2007 state return (it must be applied to my 2008
> return)?
>
Calif rules and dates are the same as above.
Perhaps you are confused about being able to _deduct_ state taxes on
schedule A (if you itemize) from your federal tax which has nothing to
do with _paying_ your taxes.
You can only use state taxes as a _deduction_ for the year that the tax
was actually paid. For example, people who paid state estimated tax for
2006 made their last payment in 2007 so they could include it as a
deduction on their 2007 federal tax along with their first 3 payments
made in 2007 for their 2007 tax.
Next year, on your 2008 federal tax you can deduct (assuming you can
itemize) the 2007 state payment you made in January along with the first
three 2008 state payments that you pay in 2008 and any other state
withholding you might have.
--
-Ernie-
--
<< ------------------------------------------------------- >>
<< 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 (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Phil Marti on April 14, 2008, 8:50 pm
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> TY2007 was the first year that I paid estimated taxes, so I am a
> little confused by the rules. I have two questions:
>
> 1) Can Q4, FEDERAL, estimated taxes paid in 2008 but before January 15
> be applied to my 2007 federal return?
All estimated tax payments for 2007 are claimed as payments on your 2007
return regardless of when they were made. This is true for both Federal and
state.
What may be confusing you is how you treat the state payments on your
Federal Schedule A. Your 2007 Schedule A will show the total of the
following:
1. Any 2006 state balance due paid in 2007.
2. Any state estimated tax payments made in 2007.
A state estimated tax payment for 2007 made in 2008 will be dealt with on
the 2008 Federal Schedule A.
Many people, I for one, find it simpler to make the final state estimated
payment in December so that everything regarding the year is in one place.
If you wind up making your last 2007 state ES payment in 2008 and get a
refund when you file the 2007 return, you have some strange calculations to
do when preparing your 2008 Federal return.
--
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 (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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