California state tax with Turbo Tax Deluxe - need to make electronic payments based on a prior year?

Forum|Forum|2 years ago
March 2, 2024
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Dear Turbotax community,

I used Turbotax 2022 to file tax return last year, and I am using Turbotax 2023 to file tax this year. One of the questions is "need to make electronic payments based on a prior year?". It further states that California requires electronic payment of taxes if you've:

1. made an estimated tax or extension payment over $20,000, OR

2. filed an original return with a tax liability over $80,000.

Then the question was re-worded to following:

Did you make a payment for any tax year that requires you to make tax payment electronically?

I am pretty sure that I do not meet criteria #1. However, I am not so sure if I meet criteria #2. May I ask how I can find out if I meet criteria #2? I can pull the tax return form that I filed in 2022 and check.

Alternatively, if I will pay tax electronically this year, shall I just select "Yes" to get a peace of mind? It looks like there is a penalty if I am required to pay tax electronically but I end up paying by check. However, I've always been paying tax electronically, although I was not sure if I was ever required to do so. I just want to make sure that I won't be penalized.

Thanks a lot!

MonikaK1

Electronic payments are required for California if you either:

Make an estimated tax or extension payment over $20,000
File an original return with a tax liability over $80,000

Fiduciaries, estates, and trusts are not required to make electronic payments.

The first payment that would trigger the mandatory e-payment requirement doesn't have to be made electronically. This applies to all subsequent payments after either of these thresholds are met, regardless of tax type or taxable year.

Taxpayers who are required to pay electronically may request a waiver of the mandatory e-pay requirement if one or more of the following exceptions apply:

You have not made an estimated tax or extension payment in excess of $20,000 for the previous tax year and your tax liability did not exceed $80,000 for the previous tax year.
Your previous tax liability or the amounts you previously paid, causing you to meet the mandatory e-pay requirement, are not representative of your future payments or tax liability.
You are requesting a permanent waiver due to a physical or mental impairment. If you have a permanent physical or mental impairment that prevents you from using a computer, include the Physician Affidavit of Permanent Physical or Mental Impairment. The affidavit must be completed, signed, and included with your waiver request.

The penalty is 1% of the amount not electronically paid.

The California Franchise Tax Board webpage has a link to access the waiver request form and has several options for electronic payments:

Bank account (Web Pay)
Request an electronic funds withdrawal (EFW) on your e-file return
Pay by credit card
Visit our Pay-by-phone option for individuals page for details on paying by phone.

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