I filed 2025 Federal and California tax returns electronically using TurboTax online. I received “Electronic Filing Instructions” for both containing 2026 Estimated tax payment vouchers. I checked the payment figures. They are based on 110% of 2025 total tax. While the federal numbers are correct, the state numbers appear to be incorrect, as explained below.
The 2025 total state tax is $45,712. The total 2026 estimated tax at 110% is $50,283, which is required to be paid in three installments - April 2026, June 2026, and January 2027. The April and January installments work out to $15,085 each at 30% of the total (as against $12,343 TurboTax figure) and the June installment works out to $20,113 at 40% of the total (as against $16,457 TurboTax figure).
Please let me know whether I am right.
- Gopinath Aiyar
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You certainly have the percentages right. I am not certain why the system would think that there would be less tax owed in 2026 than in 2025. Is it possible you did anything to adjust your income in the system while you were annualizing it or anything?
I didn’t adjust my income (or anything else) while doing 2025 tax.
TurboTax likes to divide by 4 since that is what most agencies do and then it did something odd. You did the math correctly and know the requirements so you will want to submit the correct amounts to CA. Since you must file online, you won't use the vouchers anyway.
CA FTB under Mandatory Electronic Payments - requires estimated payments exceeding $20,000 be filed online. Once it is required, your future payments for the year must also be online. If you pay be check, you can be charge a 1% penalty on the payment amount.
Looks to me like it's using 90% of the 45,712 as the starting point. Then 30% (for each of 2 qtrs) and 40% of that.
True. TurboTax should have used 110% instead of 90%. It appears that there is a glitch in TurboTax software for California state, which needs correction. It did calculate 2026 Federal estimated tax payments correctly using 110%.
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