Strange Calif Tax methods?

Question

I'm retired and yesterday I prepared my 2010 taxes using H&R Block Deluxe (old Tax Cut) - there were no errors or problems detected on either Calif or IRS forms. CA calculated 2011 EST taxes to be a total of $2572 (same amount as 2010) payable as follows:

771, 1029, 0, 772 . Why not four equal payments ? It does not really matter since I will pay with one check just to be done.

I do need to pay about $1500 additional in CA tax for 2010 and there may be a penalty in spite of the fact that I matched the CA 2009 payment as I did to the IRS. I know things are different in CA but this is strange to me. Is the software correct?

SECOND QUESTION: Re IRS -- I have received NO est tax forms for 2011 and NO envelope and labels for the 2010 return - have not moved in 40 years and never missed a payment. What is going on?

The software did NOT print out the Est tax submission forms (as it did for CA) and I guess I may have to just mail to the same place as last year - perhaps the form can be found on the web? Any suggestions?

Thanks, RC

removeps-groups · Accepted Answer

Correct. As CA was facing a budget crisis, they accelerated the estimated payments.

To avoid an estimate penalty, you must pay at least 30 percent in the first quarter, 40 percent in the second quarter, 0 percent (zero) in the third quarter, and 30 percent in the fourth quarter.

Actually you need to pay 90% of 30% first quarter, or 27% first quarter. 36% second quarter. 0 third. 27% 4th quarter. And the remaining 10% on April/15 of 2011.

You mean for your 2011 taxes you will pay with one check on 4/15/2011?

Are you talking about prior year safe harbor?

They might be trying to save paper and postage. Online payments is the way to go.

Federal =

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California =

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It will take about 2 weeks to set up the federal account. The California one is instantaneous -- just enter your bank account number and routing number when you want to make a payment.

removeps-groups · Answer

One more thing. In 2010 the payments were accelerated to 30%, 30%,

20%, 20% (or 90% of those) every quarter. In 2011 they are accelerated further as noted above to 30, 40, 0, 30. Wonder what 2012 will bring.

D. Stussy · Answer

2012: 100%, 100%, 100%, and 100%, with a 300% refund expected. ;-) California is being overly greedy.

In actuality, they haven't set the 2012 amounts yet. They will probably get to it around September 2011.

Strange Calif Tax methods?

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