This is a follow-up question to my question last month. I want to convert $52,000 from a traditional IRA to a Roth IRA this year (2006). My AGI for 2006 will be about $90K. I'll owe about $4800 in California state taxes (9.3% x $52,000) on the conversion. If I pay the $4800 to CA (plus any addditional taxes related to my income) on, say, April 15, 2007 (for tax year 2006), I believe that means I can deduct that $4800 from my 2007 income taxes when I fill out those forms in April 2008. However, if I pay the $4800 to CA as estimated tax on in
2006, doesn't this mean I could deduct that $4800 from my
2006 federal income taxes when I fill out those forms in April 2007 (because I would have paid the tax in 2006)? If so, does it matter what day I pay that $4800 to CA? Could I wait until the end of December? I've never paid estimated tax before, but I don't think I'm going to owe any penalties based on my previous post in this thread (Sep 26). My concern is that the due dates for estimated 2006 taxes according to the CA website
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are4/17/06, 6/15/06, 9/15/06, and 1/15/07 and I just want topay the $4800 in one lump payment at the end of the year. Thanks so much (again).
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