I am retired so no state tax are withheld from the checks I get, but I have to pay them when I do my MD return. How do I deduct them on my fed return when I don't know how much they are till I do my MD return?

Thank you. Richard

Do your state return first.

You have no state tax withheld from you retirement because you elected to not have state tax withheld, most likely.
Most folks in your status pay quarterly estimated taxes and if an insufficient amount is paid (eg you owe more than a set amount), you pay a penalty.
You can deduct the amount of state tax you paid, as documented on your 1099R (probably zero in your case) or the amount you paid when you filed MD taxes last year.



http://www.irs.gov/static_assets/img/logo.png
Topic 503 - Deductible Taxes
There are four types of deductible non-business taxes:

• State, local and foreign income taxes
• State, local and foreign real estate taxes
• State, and local personal property taxes, and
• State and local general sales taxes

To be deductible, the tax must be imposed on you and must have been paid during your tax year. Taxes may be claimed only as an itemized deduction on Form 1040, Schedule A (PDF), Itemized Deductions.
State and local income taxes withheld from your wages during the year appear on your Form W-2 (PDF). You can elect to deduct state and local general sales taxes instead of state and local income taxes, but you cannot deduct both. If you elect to deduct state and local general sales taxes, you can use either your actual expenses or the optional sales tax tables. Refer to the Form 1040, Schedule A Instructions (PDF), for more information and for the optional sales tax tables. The following amounts are also deductible:

• Any estimated taxes you paid to state or local governments during the year, and
• Any prior year's state or local income tax you paid during the year. "

You list on your Sched. A, in your case, the tax you paid with your MD 2013 Return (prior year's tax you paid if you did it the same way last year, i.e. were retired and paid no estimated taxes.). That is the only state tax you paid in 2013. You can't deduct taxes from your Fed tax, that you did not pay to a state in the applicable tax period.
So you can do your Federal tax without any state computation necessary. Just dig out last year's MD tax form. That's the total state tax you paid in 2013.
You could also owe a penalty on your MD return, if you owe more than a certain amount. Check the MD tax regulations.

SmearCase covers the answer very well; I have nothing to add.

Good Job!

Thanks Atlanta. Just speaking from experience with MD (that's why I moved to PA where qualified retirement plan income is not taxed by the state).
I'm not trying to become a Deputy Tax Expert-lol.

I do have a few dollars with held on one check and my wife has a lot with held... but never enough on my end for the whole amount owed... I paid $4,483 in 2013 for the year 2012... your saying I can use that amount on my 2103 fed tax return ? Thank you... richard

Glad to help!

" I paid $4,483 in 2013 for the year 2012... your saying I can use that amount on my 2103 fed tax return ? "

From the above cited IRS instruction:
The following amounts are also deductible:

• Any estimated taxes you paid to state or local governments during the year, and
• Any prior year's state or local income tax you paid during the year.

So, based on the above (prior year's taxes), providing that there are no extenuating circumstances we don't know about, the answer to your question is Yes.

Virtually ANY local/state taxes physically paid in Calendar Year 2013 can be deducted as an itemized deduction on your 2013 tax return.