"Lance Mannion" <a[at]a.net> writes:

- quote -

Yes. Same as if you filed on time and paid it with
your return.

But that brings a question to mind...let's say you
estimate you'll owe $500 on your state taxes and
so make a payment of $500 with your state extension
form. But when you finalize your state taxes, it comes
in $100 under what you had estimated and so you get a
$100 refund when you ultimately file the return.

Now, when you file your 2005 return, can you only
claim $400 as a deduction, or do you have to claim
a $500 deduction alongside $100 of income? Because
this differs from the usual refund scenario -- in this
case, you never deducted "too much" and therefore have
to recapture the excess as income, and both the payment
and the refund occurred in the same calendar year, which
is also different from the usual refund scenario.

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

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"Lance Mannion" <a[at]a.net> wrote:

- quote -

Yes unless you end up getting a 2004 refund. Then you have
to look to Publication 525 to calculate how much of the
refund is taxable 2005 income and how much of the 2004
payments made in 2005 are a 2005 Schedule A deduction.

--
Phil Marti
Clarksburg, MD

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I paid $2500 with my state's 4868 last week. I know that
amount is not deductible on Sch A for 2004. But is it
deductible on 2005's Sch A (assuming I itemize)?

Thanks

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