If you find that your income is up for the year 2013 and you make quarterly estimates for state income taxes consider making the fourth quarter estimated payment before December 31st, 2013. By doing this you will increase your deduction for state taxes on your itemized deductions on Schedule A.
If for example, your fourth quarter estimate is for $2000 and you are in the 25% tax bracket you will save $500 in federal taxes for 2013. For 2014 this will require you to look at this strategy again.
If your income is down you may want to consider paying this estimate in 2014 as you would normally. This is especially true if you are expecting a much better 2014 and will need all the deductions you can get in 2014.
Bill Zumwalt
Helping REALTORS with Tax Solutions and Solving Tax Problems for REALTORS
REALTOR Tax Preparation, REALTOR Tax Accountant, Tax Preparation Tulsa, OK
Accountant Tulsa, OK, CPA Tulsa, OK, Tax Prep Tulsa, OK, Tax Savings Tulsa, OK, Tax Accountant Tulsa, OK
The Tax Coach for REALTORS
William T Zumwalt CPA,CTC, PLLC
5416 South Yale Ave
Suite 120
Tulsa, OK 74135
918-583-1040
855-993-3339
Bill@TeamZumwalt.com
www.TeamZumwalt.com
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