In 2005 I had a large amount of income (really large), however because of Accounting delays, I only made my initial Federal and state payment for this large 2005 tax in January 2006, I filed an extention in April then in September 2006 made the final payment. I paid $10K+ to the state of NJ, because my gain was from a corporation there, I do not live in NJ. My question is: since I made the payment in 2006 for my 2005 state taxes, should I be putting this amount ($10K+) of 2005 taxes paid in 2006 in Schedule A, line 5 of my 2006 1040 return... ?
That is how I read the instructions for the 1040 schedule A (page A-3, left column on the bottom), but it seems that this would take the $10K straight off my federal tax bill, and the feds would owe me money.... is that correct??
Doesn't seem right to me...
Thanks in advance
2007-04-15
02:49:26
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4 answers
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asked by
thevoiceofreason2b
5
in
United States