How do I ensure that my California return that includes Capital Gains does not include the liability for that since it was already paid through escrow at close of sale?

If you sold real property subject to capital gains taxes, the sale must be reported in TurboTax and the capital gains tax calculated on your Federal return and any state return for which it is taxable. How you enter the sale depends on the type of real property. For example, see this help article for steps to enter the sale of a rental.

If you paid withholding taxes to California through your sale escrow to cover any California tax due, you will need to enter them in TurboTax as taxes paid in order to get credit for them. If the withholding that you paid through escrow was enough to cover the capital gains taxes, then you won't see a net increase to your taxes.

Here is how you would enter an additional payment toward your 2024 state taxes that wasn't reported elsewhere in your return:

1. Go to the Federal section of TurboTax
2. Select Deductions and Credits
3. Select Estimated Taxes
4. Select State estimated taxes for 2024
5. Click on "+Add another payment"
6. Enter the amount and date of the payment

The amounts you enter on the Federal return flow through to the state return, where you are asked questions to determine what state adjustments need to be made, if any.