Entering estimated taxes

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Newsby
Newsby Member Posts: 1 Newcomer

While doing federal taxes, there is a question: "Did you make any other state or local income tax payments in 2023?
For example, state quarterly estimated payments or state withholdings not reported elsewhere.   Enter any state or local income tax payments made in 2023"


Is this where I entered the estimated quarterly taxes that I paid into the state?   In other tax software, I would be asked the date and amount of each payment, but only when doing state taxes, not federal. 

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  • Henry
    Henry FreeTaxUSA Agent Posts: 86
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    Hi Newsby! I hope I can help to clarify things. There are two different places that you will be prompted to account for your state estimated tax payments in our software:

    1-As you are preparing your federal tax return, you are asked about any tax payments made to your state so that we can calculate your itemized deductions. You get to that screen by selecting Deductions/Credits > Itemized Deductions > Taxes Paid from the menu.

    You only want to include payments that were actually made in 2023 there, so if you made a 4th quarter 2022 estimated payment in 2023 then you can account for that. However, if you made a 4th quarter 2023 state estimated payment in 2024 then you shouldn't enter that payment there -- that would be deducted on your 2024 federal tax return instead.

    2-You can account for your 2023 estimated tax payments on your state return by visiting the State Payments screen (located under the State menu). On this screen you can report all payments made for 2023, including a 4th quarter 2023 payment made in 2024.

    Entering your estimated payments there will apply them towards your state tax liability and will affect the calculation of your state tax return.