Most of my income comes from my employer but I also receive miscellaneous income for side work I engage in. Do I need to make California estimate tax payments? Turbotax is telling me I am required to make tax payments? Please advise.
"dman81" wrote
Required? No. But you could be penalized if your prepayments from withholding are insufficient to cover your tax obligation by more than $1000. In otherwords, if you owe money next year, you could be penalized for underpayment of taxes. So, making estimated tax payments may alleviate that. Extra withholding also suffices.
If you overpaid through withholding, and you do not expect to have any significant increase in income, then there isn't a need to make additional estimated payments.
CA requires estimated tax payments from its constituents if they do not have a safe harbor. As to whether or not or Turbo Tax is correct in their assessment... who knows as we are not privy to your tax situation or any entries you made in Turbo Tax. You can find the rules in the FTB 540-ES instructions.
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