The 4th Q estimated State income taxes for 2021 is payable in Jan 2022.
If a cash tax payer itemize his deductions, is that 4th Q payment for 2021 deductible in 2022? Or 2021?
TIA
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On Tuesday, December 21, 2021 at 11:02:22 AM UTC-5, Not A Clue wrote:
The 4th Q estimated State income taxes for 2021 is payable in Jan 2022.
If a cash tax payer itemize his deductions, is that 4th Q payment for 2021 deductible in 2022? Or 2021?
It's deductible in the year paid, not the year it applies to. For that reason, I recommend that my clients make their Q4 state estimated payments before December 31.
According to ira smilovitz <[email protected]>:
On Tuesday, December 21, 2021 at 11:02:22 AM UTC-5, Not A Clue wrote:
The 4th Q estimated State income taxes for 2021 is payable in Jan 2022.
If a cash tax payer itemize his deductions, is that 4th Q payment for 2021 deductible in 2022? Or 2021?
It's deductible in the year paid, not the year it applies to. For that reason, I recommend that my clients make their Q4 state estimated payments before December 31.With the $10K limit on SALT deductions, and the $25K standard deduction for MFJ, how often does it make any difference?
I would think close to never. If you have enough deductions to be worth itemizing, you probably have paid $10K
of SALT long before the last estimated payment.
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Regards,
John Levine, [email protected], Primary Perpetrator of "The Internet for Dummies",
Please consider the environment before reading this e-mail. https://jl.ly
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According to ira smilovitz <[email protected]>:
On Tuesday, December 21, 2021 at 11:02:22 AM UTC-5, Not A Clue wrote:
The 4th Q estimated State income taxes for 2021 is payable in Jan 2022.
If a cash tax payer itemize his deductions, is that 4th Q payment for 2021 deductible in 2022? Or 2021?
It's deductible in the year paid, not the year it applies to. For that reason, I recommend that my clients make their Q4 state estimated payments before December 31.With the $10K limit on SALT deductions, and the $25K standard deduction for MFJ, how often does it make any difference?
I would think close to never. If you have enough deductions to be worth itemizing, you probably have paid $10K
of SALT long before the last estimated payment.
--
Regards,
John Levine, [email protected], Primary Perpetrator of "The Internet for Dummies",
Please consider the environment before reading this e-mail. https://jl.ly
--
On Tuesday, December 21, 2021 at 3:15:04 PM UTC-5, John Levine wrote:
According to ira smilovitz <[email protected]>:
On Tuesday, December 21, 2021 at 11:02:22 AM UTC-5, Not A Clue wrote:With the $10K limit on SALT deductions, and the $25K standard deduction for MFJ, how often does it make any difference?
The 4th Q estimated State income taxes for 2021 is payable in Jan 2022. >>>>
If a cash tax payer itemize his deductions, is that 4th Q payment for 2021 deductible in 2022? Or 2021?
It's deductible in the year paid, not the year it applies to. For that reason, I recommend that my clients make their Q4 state estimated payments before December 31.
I would think close to never. If you have enough deductions to be worth itemizing, you probably have paid $10K
of SALT long before the last estimated payment.
--
Regards,
John Levine, [email protected], Primary Perpetrator of "The Internet for Dummies",
Please consider the environment before reading this e-mail. https://jl.ly
--
I was thinking of the potential increase in the cap on SALT; but it looks unlikely to pass this year. Does anyone think that f it pass early in 2022 that it would be effective as of 2021?
TIA
It's deductible in the year paid, not the year it applies to. For
that reason, I recommend that my clients make their Q4 state
estimated payments before December 31.
With the $10K limit on SALT deductions, and the $25K standard
deduction for MFJ, how often does it make any difference?
You are correct that it rarely makes a difference with the SALT cap,
but the cap is only temporary (it is scheduled to sunset in 2025) and
my clients tend to be repeat clients. I like to keep them trained to
do things that make my life easier.
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