Can I opt to have withheld more CA state income taxes during the year, so I can deduct more on Federal taxes?

Living in California, my single biggest federal tax itemized deduction is my state income taxes every year. From what I understand, the amount withheld during the year is deductible. 1) Is the federal deduction based on amount withheld or actual amount owed? 2) Is is possible to legally opt to have the state withhold more money than normal? 3) Barring additional benefits of saving/investing my own income, does this strategy seem advantageous for reducing federal tax liability?

Public Comments

1. Amount paid during the year. But, here's what's going to happen: During 2009, you'll withhold, say, $5,000 but only owe $4,000 to CA. In 2010, you'll do the same thing. But, in 2010, you'll receive a $1,000 refund from CA for 2009 taxes. So, your deduction in 2010 will be $4,000. Consequently, your acceleration of income tax deduction will occur one time only.
2. No. If the IRS discovers you have been withholding addtional taxes just to itemize, they will disallow the entire deduction. And the refund from CA will be taxable income in the following year. Not a good plan. Helen, EA in PA
3. Not a good plan..... like Helen EA PA said the IRS will disallow your deduction and will send you a very nice letter "THAT YOU OWE" best thing to do is sit down with a licensed, bonded tax professional have him/her help you plan your credits, deductions and exemptions. It should be included with your tax preparation fees that what I do. quick ideas to ?: Education credit (hope credit or life time) retirement 401k buying a home. www.myitax1040.com