Herb Smith wrote:
- quote -

Watch out for the AMT. State income taxes are not
deductible.

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FredK wrote:

- quote -

If that thread contained information relevant to this
current question, you should have posted this as another
message on that thread or repeated the relevant information.
Most of us do not have the time or inclination to search for
your previous message thread.

- quote -

Correct, if you pay the state tax in 2007, it is an
allowable deduction on your 2007 federal return, assuming
you qualify to itemize deductions.

- quote -

Correct again.

- quote -

As long as you make the payment before the end of December
2006, it is a valid deduction for 2006 federal return.

- quote -

Then make sure that you send that payment of state tax
BEFORE the end of 2006, if you want to claim the deduction
on your 2006 federal return.

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

This is a follow-up question to my question last month. I
want to convert $52,000 from a traditional IRA to a Roth IRA
this year (2006). My AGI for 2006 will be about $90K.

I'll owe about $4800 in California state taxes (9.3% x
$52,000) on the conversion.

If I pay the $4800 to CA (plus any addditional taxes related
to my income) on, say, April 15, 2007 (for tax year 2006), I
believe that means I can deduct that $4800 from my 2007
income taxes when I fill out those forms in April 2008.

However, if I pay the $4800 to CA as estimated tax on in
2006, doesn't this mean I could deduct that $4800 from my
2006 federal income taxes when I fill out those forms in
April 2007 (because I would have paid the tax in 2006)? If
so, does it matter what day I pay that $4800 to CA? Could I
wait until the end of December?

I've never paid estimated tax before, but I don't think I'm
going to owe any penalties based on my previous post in this
thread (Sep 26). My concern is that the due dates for
estimated 2006 taxes according to the CA website
(http://www.ftb.ca.gov/forms/06_forms/index.html) are
4/17/06, 6/15/06, 9/15/06, and 1/15/07 and I just want to
pay the $4800 in one lump payment at the end of the year.

Thanks so much (again).

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >