Estimated payments for next year

[psdeckers]

After filing CA income tax, there is a schedule for making estimated taxes for next year. The recommended payments are different for each payment and only 3 payments instead of 4. The schedule is for Voucher Numbers 1, 2 and 4. Why did turbo tax created a schedule of three uniquely different payments instead of four for estimated state income tax?

[SteamTrain · Accepted solution]

@psdeckers 

Yeah...CA is a bit strange for quarterly estimated payments:

IF you scroll down this CA FTB page

Estimated tax payments | FTB.ca.gov

You'll find this:

______________________________

When to pay

Your tax payments are due in 4 payments. California differs from federal. To avoid a penalty, you must pay on or before the below dates.

Payment Amount Due date

1	30%	April 15, 2026
2	40%	June 15, 2026
3	0%	September 15, 2026
4	30%	January 15, 2027

[psdeckers]

Thank you. Any idea why the 3rd payment is 0%?

[VolvoGirl]

I'm in Calfornia.  We don't know why they want it that way.  

https://www.ftb.ca.gov/forms/2025/2025-540-es-instructions.html 

Installment Payments – Installments due shall be 30% of the required annual payment for the 1st required installment, 40% of the required annual payment for the 2nd required installment, no installment is due for the 3rd required installment, and 30% of the required annual payment for the 4th required installment.

[Mike9241]

@VolvoGirl @SteamTrain Totally squirrely. But at least they add up to 100% 

[joegeodesist]

My beef with TurboTax calculation of next year's estimated tax payments is that they are only correct under the following circumstances:

1. It assumes that next year's income is ≥ this year's.
2. It assumes your income is earned in equal installments
   (and even then, it assumes 3/months per payment when payment #2 is for only two months)

While it is a helpful reminder, you are at risk of over- or underpaying your estimated taxes if you blindly follow the provided schedule.

ADVICE TO IMPROVE: Add a statement, "These are rough estimates only, they may be lower than necessary if your income for next year is earned unequally / mostly in early months, and may be higher than necessary if your income is lower for next year or earned unequally / mostly in later months."

[DawnC]

You can go through the W-4 Estimates interview in the Other Tax Situations area and change the estimated income amounts for next year to generate accurate estimates.   @joegeodesist 

Can TurboTax calculate next year's federal estimated taxes?