The Money Mustache Community
Learning, Sharing, and Teaching => Taxes => Topic started by: shanaling on December 02, 2017, 11:03:38 PM
-
Is it weird to prepay next year’s state income tax this year and change next year’s state income tax withholding to 7 allowances (to withhold no or very little state income tax on paycheck)?
-
I was hoping to do the same thing. Some questions I have:
1. We itemize so my state refunds are federally taxed next year. But I can elect to have my state tax overpayment applied to 2018 state taxes and not refunded. Will the state overpayment be taxed federally next year even if I don't get a state tax refund?
2. When I used Turbotax to enter a hypothetical extra state tax payment of 10k for 2017, it didn't affect my federal taxes at all. So I wonder if there's something I'm missing that Turbotax knows.
-
2. When I used Turbotax to enter a hypothetical extra state tax payment of 10k for 2017, it didn't affect my federal taxes at all. So I wonder if there's something I'm missing that Turbotax knows.
How did that change Line 40 of Form 1040 (assuming that is still the "deduction" line in 2017)?