My wife's law firm files a consolidated tax return for 10 states on behalf of the partners and provides withholding to CA on behalf of the partners to CA but does not file a consolidated return there. My question is where to enter these amounts in the TT Federal return to get the Federal deduction and properly flow the mounts over to the CA state return and our primary state (DC). I see two possible routes under Estimates and other Taxes Paid. 1) enter them all under Estimates "2017 State Estimated Payments." This would seem like the right place for CA since we have to file a return there. 2) Another possibility is "Other income taxes paid in 2017" > "Withholding not already entered on a W2 or 1099." This seems OK for the consolidated state returns. But I am not clear which is proper.
Should I use method 1 or 2?