It seems as the suggested turbo tax estimated tax is not accurate!

[RHET]

I paid all suggested estimated tax to both state and federal.
But owe 30% of what I paid CA state, while get a refund 40% of what I paid as estimate tax to IRS. Why the estimated amounts thru TT are so off?

[LindaS5247]

The software will generate an estimate based on the information you provided. Fluctuations in income from the prior year, changes in filing status, changes in employment, dependents and deduction, or eligibility for tax credits etc. can affect your estimated taxes.

When attempting to estimate your income tax for the year ahead, you are predicting the future. If you underestimate, you may be penalized for the number of days it remains unpaid. 

The simple way to ensure that you pay what you owe is to pay at least 100% of the tax you paid the previous year, unless you have some indication you are going to earn significantly less.

If you think you are going to make less, calculate about how much and try to pay 90%. 

Recalculate the estimated taxes at mid-year to see where you are.

[RHET]

Hi Linda,

Thank you for the reply.

If you read the text of my question, it indicates that I followed TT and happened to owe substantially to CA state while I had a huge refund from IRS. Something went wrong with Turbo Tax.

Looking further into this, I noticed Turbo Tax has generated only 3 vouchers for CA as oppose to 4.

Even considering this error, I never seen such huge discrepancies. This is a huge gap between what TT predicted and the end result. I am using TT for over 27 years, and know all about basic concept of what your presented.

Appreciate any insight anyone could provide. And, who is responsible for this major inaccuracy here?

Below +/-10% inaccuracy is very acceptable and neither side mind it. But now I have to pay penalty.

My situation has not changed at all, comparing to last year.

Regards,