Ask Terry Questions Prepay 2017 Income Taxes Instead of Waiting til Jan 15th

Prepay 2017 Income Taxes Instead of Waiting til Jan 15th

By Terry Savage on December 25, 2017 | Wild Card

The other day on WGN radio I thought I heard you say that I cannot prepay now my Jan 2018 quarterly IL income tax payment so I can expense it on my 2017 federal taxes. I am confused why not. If I am a cash basis taxpayer why is that not a 2017 expense on my federal taxes?

Terry Says

You cannot prepay your 2018 state income taxes.  But you CAN make the fourth quarter estimated tax payment that would be due on Jan 15th for your state taxes. Do it immediately!  It is allowed since this is for your 2017 taxes.

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