2024 Estimated Tax Payments and Quicken's Tax Summary/Schedule Report For 2024 - Ongoing Issue

carlj07

First, I did see this same discussion (now closed) for 2023. A year later and the problem still persists for 2024 and into 2025.

Most everyone knows that the 4th quarter federal and state (if applicable) estimated taxes are due on or about January 15th of the following calendar year. I always make my 4th quarter payments close to or on the January due date and, although made in the new calendar year, those estimated tax payments apply to the previous calendar tax year (i.e. 2024 4th quarter estimated federal and state taxes paid in January 2025 should be included in Quicken's Tax Summary Report for 2024).

In my case, both my federal and state 2024 4th quarter estimated taxes were paid on the same date, January 15, 2025. In my 2024 Tax Summary, Quicken accurately includes my 2024 4th quarter federal estimated tax payment, which was made in January 2025. In that same 2024 Tax Summary, Quicken does NOT include my 2024 4th quarter state estimated tax also paid in January 2025, but instead shows that payment in my 2025 Tax Summary.

Of course, I can change the date (in Quicken) of my 4th quarter state estimated tax payment to December 31, 2024 for the sake of getting the 2024 Summary Report to accurately include that payment - however, if Quicken can show my 4th quarter federal estimated payment in the appropriate yearly Tax Summary, then it should be just as easy to do the same for the 4th quarter state estimated payment.

This issue is also apparent when running the Tax Schedule Report! I did file a Problem Report several months ago about this issue. Obviously, the history of this issue goes back at least 2 years - it's time to finally fix it.

FYI I'm using Win11 with the most recent Quicken version (R61.17, Build 27.1.61.17).

Quicken Moderators - is there any hope of Quicken addressing this long-ongoing issue before the 2025 tax season (or sooner)?

Quicken Kristina

Hello @carlj07,

Thank you for posting to let us know this is still happening. Is this the earlier discussion you were referring to?

https://community.quicken.com/discussion/7945481/tax-summary-report-2023-and-estimated-tax-payments

To look into this issue further, please let us know what category/tax line are you assigning to the state quarterly payment.

I look forward to your response!

Chris_QPW

For what it worth, as far as I know, whereas Quicken takes into account the federal estimated tax on or before Jan 15th being applied to the previous year, it has never done the same for the state one.

So, it isn't as much a "bug" as a feature that was never designed/included.

volvogirl

You should pay the state 4th quarter before Dec 31, because then it will be a federal itemized deduction if you itemize. If you pay it in January of the next year it won't be a federal deduction for 2024 but for 2025. So it's right to not be on the 2024 tax schedule, at least for federal returns. Don't know about showing it in Quicken for 2024 for your state tax return estimated payment.

carlj07

Volvogirl - The 4th quarter estimated tax payments ARE deductible for the tax year they apply to when paid on or before the due date specified by the IRS for that tax year, which is usually January 15th of the following calendar year. Check out the IRS publication https://www.irs.gov/faqs/estimated-tax/individuals/individuals-2 . ALL federal IRS forms already instruct this AND, since most states that also collect income tax also follow the IRS "due dates" for estimated taxes, the same applies to those states in their instructions. Additionally, ask any tax attorney/CPA and you will get the same answer. Furthermore, even TurboTax (another Intuit product) affirms this.

The issue I am raising has to do with how Quicken deals with the STATE estimated tax payments made in January of the following calendar year when running a Tax Summary/Tax Schedule report. Quicken already gets this correct regarding federal estimated taxes paid in January of the following calendar year. Why does Quicken NOT do the same for the state estimated taxes paid in January in the Tax Summary/Schedule of the previous year? To put it another way, what good is Quicken's Tax Summary/Tax Schedule reports if they are not accurately reporting those STATE estimated payments made for that tax year?

This is the issue which Quicken should address - include the STATE estimated tax paid in January when running the Tax Summary/Tax Schedule reports just as they already do for the FEDERAL estimated tax paid in January!

carlj07

Quicken Kristina;

The category/tax line I am using is Schedule A / State estimated tax, qrtrly (see attached screenshot). This populates the Tax Summary/Tax Schedule reports correctly for state estimated taxes paid throughout the tax year EXCEPT when dealing with the state estimated payment made in January of the following year. The estimated federal tax line works as it should (Form 1040 / Federal estimated tax, qrtrly) and includes estimated federal tax payments made in January of the following year, as allowed by IRS rules.

And yes, that is the previous post I was referring to.

volvogirl

I'm sorry. I guess I wasn't clear and didn't explain it very well. Of course you deduct the 2024 4th quarter estimated payments made in Jan 2025 on your 2024 Federal and State tax returns. I wasn't saying that you don't. Those are not technically a "deduction", they are estimated payments you get credit for and are subtracted from your tax due.

I was talking about the separate issue of being able to take a state tax deduction on your Federal schedule A if you don't take the Standard Deduction. A STATE estimated payment made in 2025 will not be deductible on your 2024 FEDERAL Schedule A line 5. If you paid the 4th Qtr State estimated payment in Dec 2024 you would be able to deduct it on your Federal Schedule A.

carlj07

Volvogirl - You may be confusing state estimated INCOME tax payments with other state/local taxes which are collected throughout the year and may also be deductible (realestate taxes, personal property taxes, vehicle registration taxes where permitted, etc.). Certainly, those other taxes paid are only deductible in the year they are paid. However, estimated state INCOME taxes ARE deductible for the year those estimated income taxes apply, regardless if the 4th quarter estimated income taxes are paid in January of the following calendar year. My local tax guru and even TurboTax confirm this!

Every state I have ever lived in which collects state income tax follows the federal payment due dates for paying state estimated income taxes for that tax year. And those estimated payments are due AFTER the close of that quarter. Since the 4th quarter for most individual tax payers ends on December 31, the estimated tax payment for that quarter will obviously be made sometime in January (on or before the published estimated income tax due date). And making a late quarterly estimated tax payment could even qualify you for a penalty for late payment (i.e. paying 4th quarter estimated tax after the January due date could earn you a penalty on that year's tax computations).

I have included screen shots from my 2024 TurboTax entries. When completing the Federal portion in TurboTax, under the Deductions & Credits tab, there is a section for Estimates and Other Taxes Paid. Click on Estimates and you can enter both Federal and State estimated taxes paid for 2024 - the amount paid and the date paid.

Those entries are then totaled on the next page in TurboTax (all 4 quarters are included, even the 4th quarter paid in January 2025).

These totals are then copied to their respective TurboTax Federal and State tax forms and include ALL estimated payments made for that tax year (even those payments made in 2025). State ESTIMATED INCOME TAXES PAID are handled the same as the Federal and on the state income tax form, there is even a separate line entry for the total estimated taxes paid for that year. 4th quarter payments are always included (including any applicable penalties for late payments). Again, every state I have lived in that collects state income taxes handles estimated tax payments this way.

Back to my original post, Quicken should be handling state estimated income tax payments the same as federal estimated income tax payments and, for the sake of accurate reporting, include ALL state estimated income tax payments for a given calendar/tax year in both Quicken's Tax Summary and Tax Schedule reports.

volvogirl

You still don't understand. I AGREE WITH YOU about that. I am not taking about your state return. BUT yes I am only talking about state estimated INCOME tax payments with other state/local taxes which are collected throughout the year and may also be deductible (realestate taxes, personal property taxes, vehicle registration taxes where permitted, etc.). Yes only state estimated income taxes paid DURING the current year are included with those other deductible state taxes on Federal Schedule A. Ask any CPA or anyone else about Schedule A.

Here is Federal Schedule A instructions page 3

https://www.irs.gov/pub/irs-pdf/i1040sca.pdf

That says state estimated payments made DURING 2024 so that would include a payment made in Jan 2024 for 2023. NOT Jan 2025 for 2024.

And btw, I am one of the top answerers over on the Turbo Tax forum for over 10 years. Good bye

Jim_Harman

[Sorry, @volvogirl our posts overlapped]

We are still confusing how state estimated tax payments paid in January are treated on your Federal tax return vs your state return.

Quicken's Tax reports and the Tax Planner only address Federal returns, not state returns. As such they correctly show state estimated taxes paid in January 2025 in the Schedule A section of the Tax Schedule report when you set the year to 2025, not 2024. This is the case even if the January 2025 payment is credited to your 2024 state taxes. If you made a state estimated tax payment in January 2024, that payment is included in Quicken's 2024 Tax Schedule report regardless of what state tax year it applies to

The Schedule A instructions for Line 5a are quite clear about this:

• State and local income taxes paid in 2024 for a prior year, such as taxes paid with your 2023 state or local income tax return. Don't include penalties or interest.

• State and local estimated tax payments made during 2024, including any part of a prior year refund that you chose to have credited to your 2024 state or local income taxes.

Disclaimer: I am not a tax advisor. You should consult your tax advisor for all tax-related issues.

Quicken Kristina

Thank you for your replies,

I forwarded this to the proper channels to confirm if this is working as intended or if it's a bug.

Thank you!

(CBT-584)

volvogirl

Yes I think the Quicken programmers were only concerned with the Federal side of the tax schedules. My tax schedule only shows FEDERAL items. I use Quicken 2013. Can you even get a tax schedule for your STATE? I make my own reports. Well if you customize the Tax Schedule for the dates to Jan 2025 you will get the 4th QTR state payment.

carlj07

So, my take-away from this discussion is that Quicken's Tax Schedule Report and Tax Summary Report is strictly for FEDERAL tax purposes and those Quicken reports should probably be more appropriately retitled FEDERAL TAX SCHEDULE and FEDERAL TAX SUMMARY to avoid this unnecessary confusion when seeing the STATE 4th quarter estimated tax paid in January excluded from the report(s).

From my perspective, every state that I have lived in over the past many years that has a state income tax allows their respective 4th quarter estimated income taxes paid in January to be included on their state tax form for the year the estimated tax is applied to (same as Federal). I use those report totals to cross-check my tax form entries and not seeing all 4 quarters of state estimated tax payments included in the TAX SCHEDULE or TAX SUMMARY report for my yearly State Estimated Taxes Paid was/is annoying.

One other “side effect” from this issue is if you import your tax data from Quicken into TurboTax and the STATE 4th quarter estimated tax was paid in January, that amount will also be excluded from the import, which would require you to manually enter the 4th quarter amount into TurboTax to accurately complete your state tax return. Not a big deal, but then why import at all if the data being imported is not appropriately all-inclusive?

Perhaps someday that issue can be resolved so Quicken's Tax Summary/Schedule Reports, as well as the tax import from Quicken into TurboTax, will include all the necessary information for accurate state tax filing purposes. Thanks for the lively discussion!

markus1957

It's working as designed for federal income taxes, both for reporting and importing as well as the Tax Planner module. Quicken is only designed for federal income tax projections and reporting.

It is unlikely Quicken will ever devote the resources to handle state income taxes considering there are 43 states and DC, each with their own nuanced tax schedules.