Personal Finance (Not Investing) • Clarification on itemizing State Taxes.

I am looking for clarification on itemizing state taxes.We will be bunching our tithe to itemize this year, we will not itemize next year.

My financial advisor (does not prepare our taxes or offer that service, we prepare our own taxes) sent this:

Since you're itemizing this year, make your state tax payment in Dec 2024 so you get the addtl deduction.

This completely baffled me. How would a person pay/file early in Dec 2024???

So I looked up....
IRS topic 503: You may deduct as an itemized deduction, state and local income taxes withheld from your wages during the year (as reported on your Form W-2, Wage and Tax Statement) and estimated state and local income taxes and prior years' state and local income taxes paid during the year.

Yes I realize the 10K limit (we have no house so its just state taxes)

So I don't really pay or file early ? right? I just itemize withholdings from this year plus state taxes we paid in April 2024 (2023 tax bill) . And the refund will be taxable next year? (well it isn't the whole refund d/t 10K limit obviously but we will have to pay taxes on some of it? )

Just to reiterate...I don't need to try to pay this years tax in Dec? But I can itemize with holdings ?

I feel silly this suddenly has me so confused but we have not itemized since Trump tax cut.

Statistics: Posted by blueskiesNM — Tue Dec 10, 2024 8:38 am — Replies 3 — Views 159

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