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Author: TMFExRO Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 120809  
Subject: Re: Pay Q4 estimated state tax this year? Date: 12/16/2000 4:31 AM
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Anyway, being timely with my bills (and, as I said earlier, appreciating the opportunity to gain additional Federal deductions this year), I am considering making my Q4 state estimated tax payment on December 29th. I will still make my Q4 Federal estimated tax payment on 1/15/2001.

I just want to confirm that I will be able to deduct this payment on my 2000 Federal return.


Yes, you will. This is a common practice and really appeals to those of us who like order. (It can also be used as a tax planning tool.)

Furthermore, hypothetically speaking, is there any legality, tax code, etc. preventing someone from making a rather larger than normal (and larger than needed) 4th quarter estimated state tax payment?

Yes. The economic reality, or "smell" test. This just came up in a post within the last couple of days. If your state estimated tax payment is clearly just an attempt to manufacture a Federal deduction, it can be disallowed.

TMF ExRO
Phil Marti
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