Hi Here's my scenariofor the first 9 months of the year i was a 1040 employee and made around 50k. For the last3 months I've been a self employed contractor and willmake 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 thestate 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.
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