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Another tax question: State tax paid as a deduction
Old 02-18-2015, 04:36 PM   #1
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Another tax question: State tax paid as a deduction

Another tax question for your kind consideration and feedback.

In 2014 we made a tax payment to the state of California for taxes still owed at the time our return was filed for the 2013 tax year.

As such we should be able to list this as a deduction on our 2014 Federal return.

I have tracked the dollar amount in our 2014 expenses, but I don't have 'proof' of the payment by way of a cleared check.

Do I need 'proof' - or is this another case like our 529 payment - the IRS will 'contact us'?
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Old 02-18-2015, 05:08 PM   #2
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Claim it. And I wouldn't go through a lot of trouble to get proof unless you feel you are likely to get audited. The random chance for most folks is next to nothing.
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Old 02-18-2015, 05:42 PM   #3
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Claim it. And I wouldn't go through a lot of trouble to get proof unless you feel you are likely to get audited. The random chance for most folks is next to nothing.
Thanks!
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Old 02-18-2015, 05:44 PM   #4
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Claim it. And I wouldn't go through a lot of trouble to get proof unless you feel you are likely to get audited. The random chance for most folks is next to nothing.
+1
It would be trivial for the IRS to check with California on this.
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Old 02-18-2015, 10:10 PM   #5
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I have tracked the dollar amount in our 2014 expenses, but I don't have 'proof' of the payment by way of a cleared check.
Does this mean you sent a check but don't have a copy? or that you paid by some other means with no proof? I would certainly want to have the ammo to back up any claim.............probably easier to get it now than 2 yrs from now. Sometimes (often?) banks will provide a limited number of processed checks for free. Don't know what other method of payment you might have used but I would think it would only get harder to get as the yrs go by.
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Old 02-18-2015, 10:35 PM   #6
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Does this mean you sent a check but don't have a copy? or that you paid by some other means with no proof? I would certainly want to have the ammo to back up any claim.............probably easier to get it now than 2 yrs from now. Sometimes (often?) banks will provide a limited number of processed checks for free. Don't know what other method of payment you might have used but I would think it would only get harder to get as the yrs go by.
+1

Even a copy of the bank statement for the month that the payment was made would be better than keeping nothing in your records.
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Old 02-19-2015, 04:09 AM   #7
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When you apply a refund owed on a state income tax return to the next year's taxes, the state income tax return is typically all you ever have.
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Old 02-19-2015, 06:38 AM   #8
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Your proof is your return showing what you owed California and your bank statement showing the payment.
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Old 02-19-2015, 08:25 AM   #9
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Your proof is your return showing what you owed California and your bank statement showing the payment.
My bank typically only shows the check# and the amount but no payee.
I suppose matching amounts on tax return and bank statement would be better than nothing at all but a skeptical person could wonder if the check was sent to a friend/relative/etc. Maybe CA could send a confirmation of payment if asked?
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Old 02-19-2015, 08:53 AM   #10
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Actually with my bank I could print out an image of the check and some banks both front and back, however, I was assuming that the payment would be direct debit (writing a check is so 2000s ) so who was paid would show up on the bank statement.
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