Estimated Tax Crediting ?

Question

Hello,Thank you very much for the answers to my question re when one can deduct Real Estate tax payments.  Understand it now, and appreciate the help.Guess I also should have asked this:When one pays Estimated Taxes, the 4 payments, the Last one is due and paid in 2010, while the first three were due and paid in 2009.When is this last credited:For your 2009 taxes, which presumably it was for, or must one wait until 2010 taxes are done and hence use the 4Q one paid in Jan. and the first three paid in 2010 ?Thank,Bob

paulthomascpa · Accepted Answer

"Bob"  wroteFor the 2009 tax return, the estimated payment made in January 2010 for the fourth quarter of 2009 is counted as a payment on your 2009 return for computation of any balance sue or refund.For the deductibility of state taxes paid or withheld on Schedule A though, you count ~only~ the payment(s) made during the year.  So if everything was paid on the scheduled due date, you would deduct on schedule A along with any state tax withheld, the fourth quarter for the previous year (2008) made January 15, 2009, any balance due paid with the return, and the first three quarters estimated tax payments.The fourth quarter 2009 payment, made January 15th 2010, is deductible on Schedule A of the 2010 return - the year paid.

hrhofmann · Answer

Whenever you send in money for the estimated tax, be sure to put in the note section that it is for estimated taxes and the year to which it applies. MY SIL and daughter sent in one payment January and it was credited to the wrong year.

Estimated Tax Crediting ?

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