Lowering federal taxes with extra estimated state payment?

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Marylander1
Posts: 579
Joined: Sat Jan 04, 2014 2:18 pm
Location: Baltimore & DC

Lowering federal taxes with extra estimated state payment?

Post by Marylander1 »

Someone else's TV today had CNBC financial porn coverage of the tax bill*. They mentioned an actionable strategy for those of us in states with higher income tax rates: pre-pay 2017 taxes with an additional estimated payment.

Money we send in 2017 to our state tax collector remains deductible on our 2017 federal taxes. The same money sent starting January 1 quite possibly will not be. (In our personal case, we generally owe a state payment, and receive a federal refund.) Is sending an estimated payment now a rational plan, or am I (and CNBC) missing something?

* Discussion of the pending tax bill is of course off-topic; this question is purely about the validity of an actionable step to take now.

-Marylander1
mega317
Posts: 5705
Joined: Tue Apr 19, 2016 10:55 am

Re: Lowering federal taxes with extra estimated state payment?

Post by mega317 »

Long ongoing thread on this

viewtopic.php?t=233726
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