I had my California taxes withheld on Form CA 592-B. How should I report this on my federal return?
You can claim an itemized deduction for the state taxes California withheld on Schedule A. However, If you claim the deduction, next year you'll have to include in your income the amount that California refunded to you. You'll report it as an overpayment.
Don’t report the estimated taxes you paid California as payments for the federal taxes you owe. You’ll only report the federal tax withheld.
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This advice is for general information purposes only and may not apply to you. Every tax situation is different. This is not intended to be legal advice. Taxpayers should consult an H&R Block Tax Professional regarding their individual tax situation.