Discussion:When can I deduct state tax payments?

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Discussion Forum Index --> Basic Tax Questions --> When can I deduct state tax payments?
Discussion Forum Index --> Tax Questions --> When can I deduct state tax payments?

Wrwcpa (talk|edits) said:

1 April 2009
I have a client who had huge Q4 '08 income. He paid his estimated New York State taxes on January 15, 2009. Therefore, he can't deduct that Q4 payment on his 2008 Schedule A, correct? Does he get the deduction in 2009? If so, where do we put it?

Wrwcpa (talk|edits) said:

1 April 2009
Specifically, my question is: which line on Schedule A?

Death&Taxes (talk|edits) said:

1 April 2009
Cash basis? The deduction is in 2009 on Sch A. Most software has you list the date of the payment and will keep it in reserve for next year's version.

Death&Taxes (talk|edits) said:

1 April 2009
Line 5, but for 2009.

Wrwcpa (talk|edits) said:

1 April 2009
Yes, cash basis.

Using Proseries for 2009; starting fresh.

Does it go in #8: "Other Taxes"?

Thanks!

Wrwcpa (talk|edits) said:

1 April 2009
Got it, thanks very much.

Chris2lane (talk|edits) said:

April 1, 2009
That's why I always have my clients pay their 4th qtr. state estimated payments before December 31 and not wait until January 15.

Wrwcpa (talk|edits) said:

1 April 2009
Yeah... a very painful lesson learned in this case.

AEM CPA (talk|edits) said:

1 April 2009
It gets rolled in with the rest of income taxes paid on line 5a.

AEM CPA (talk|edits) said:

1 April 2009
Oh, I see D&T already answered that. (Assuming it's still line 5a in 2009 - who knows what Congress will do between now and then?)

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