Are January estimated payments not deductible for that tax year?

Question

I made my final 2011 estimated state tax payment in January 2012 by the due date.  For federal purposes, I'm wondering if on my 2011 Schedule A I should include this last payment.  

Since this was for TY 2011 it makes sense to me that this should be counted for 2011, but a strict reading of the Schedule A instructions seems to disagree, although they don't explicitly say so.

Do I really need to wait until a year from now to deduct that final payment?

If that's the case, major bummer for this year.  Worse yet, for next year I see that the 1040 line 10 instructions say I can't even use the "State and Local Income Tax Refund Worksheet" and am instead directed to publication 525 for "Itemized Deduction Recoveries" just because I made my final payment in January.

Do most people not make their final estimated tax payment in January when it is due?  If I'm reading this right I would have saved myself a _whole_ bunch of fuss by paying it early.  :(

Wayne Z · Accepted Answer

No.

You would've had to pay it by 12/31 to get the deduction on the 2011 return.

It will now be a deduction on your 2012 return.

What most people do is make their state estimated payment by 12/31 and then their Federal estimated payment by 1/15.

Anonymous · Answer

For the tax year 2011, the fourth quarter 2010 estimated state tax payment, plus the first, second and third quarter payments for 2011 are deductible in 2011. The 4th quarter payment for 2011 paid in 2012 is deductible in your 2012 return. 

  Paying before 31DEC11 would have made it deductible in 2011

? · Answer

No. on your 2008 tax return, you're allowed to deduct in basic terms taxes paid in 2008, no longer those paid in in the past years. you're able to be able to amend your 2007 federal tax return to deduct the state taxes paid in 2007. to try this, use variety 1040X and fix a 2007 schedule A. On any return (or modification), you're in basic terms allowed to deduct state earnings taxes or sales tax (yet no longer the two), actual assets taxes, and a million/2 of self-employment taxes. No deduction is authorized (on any return) for federal earnings taxes.

Anonymous · Answer

No, many taxpayers made their state tax payment on or before Dec 31st so they can take advantage of the deduction if they itemize.
Keep it in mind in Dec 2012.

tro · Answer

the payment in Jan is voucher # 4 for the tax year just expired, yes it is included in the amount that has been prepaid for that year's taxes
yes, that would be included on the Sch A

Are January estimated payments not deductible for that tax year?

5 Answers