“If you paid state and local income taxes in 2007 for a prior year (such as taxes paid in 2007 as a balance due on your 2006 state income tax return), include this amount as other state and local income taxes paid.
Other state and local income taxes: $____”
While filing online, I got an alert here. I did not enter anything in. What exactly is the question asking?
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This entry was posted by admin on December 13, 2009 at 2:31 pm under tax planning. Tagged 2007, Income, Income Tax Return, Income Taxes, Local, Local Taxes, Mean, Paid, Prior, Question, State, State Amp, State Income Tax, State Income Tax Return, State Tax, State Taxes, Tax Question, Taxes, Taxes Online, Taxes State, This, Year.
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Me says:
This question basically is looking to see if you should itemize your deductions or take the standard deduction.
December 13, 2009, 2:53 pmWhen you itemize, one of the things itemized is how much in taxes you paid to the states last year. They can figure out how much you paid from your paystub.
They also want to know though, if you owed any money on your 2006 tax return that you paid then, because that counts towards “income taxes paid in 2007″ for itemized deduction purposes.
So what this question is asking is:
- Did you owe any income tax on last years return that you paid.
- Did you pay any back income taxes on last years return.
- The key is that it’s *state* income taxes. They don’t care whether you owed / paid any federal income tax last year.
Nothing too sinister.
hermione says:
Did you send a check to the irs in 2007 for taxes due for 2006? Did you pay or get a refund? If you got a refund and you itemize this year you have to pay taxes on that refund. If you paid taxes then you can deduct it if you itemize.
December 13, 2009, 3:01 pmtravelgu says:
Does your state have an income tax?
December 13, 2009, 4:00 pmBesides a W-2, did you write any other checks to the state?
Such as estimated tax payments?
Such as owing when you filed your taxes last year?