Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Hi Here's my scenario
for the first 9 months of the year i was a 1040 employee and made around 50k. For the last
3 months I've been a self employed contractor and will
make around 40k. Now my question is this. I've read throught the estimated tax payment rules for both federal and state and I'm not required to make payments. (I've already had more withheld this year than my tax for last year). My question is with the
state and local income tax itemized deduction. I've deciphered it as you can deduct all the state taxes I've had withheld this year as well as any estimated tax payments. So, I'm thinking I can get a better federal tax deduction if I pay an estimated state tax payment even though I'm not required to. Is this possible and if so is it the right thing to do. I want to do it this year because I can itemize a lot more this year than I'll be able to next year. (and what really matters is how much over 4500 you can itemize any way i guess). Any help would be fantastic.

Also, If i do work in december but don't get paid until January does it count on my 99 or 00 taxes.
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.