CA LLC Estimated Tax Payment

[Jen998]

Can the CA LLC estimated tax payment of $800 be e-filed in Lacerte when the LLC return is on extension?

[Karl]

Yes, but you have to watch and be very clear how you want it auto-debited.

If the taxpayer is in compliance, and paying ahead like they should be: you can EITHER 1) set it as a Q1 state estimate to auto-debit, using the state estimates e-file module, or 2) set it as an extension payment auto-debit (some overrides may be needed to force the amount since nothing is owed), and then apply it forward to the subsequent year when you file. I personally recommend Method 1 as I think it's a lot cleaner.

If the taxpayer is delinquent, then you need to do Method 2 above, just not apply it forward. But really, then the taxpayer owes $1,600 ($800 for 2025 past-due and $800 for 2026 due 4/15/26), so I would override the amount to pull $800 using Method 2, OR pay $800 using Method 1 and another $800 using Method 2.

[Jen998]

Thank you. I prefer the method 1 too. However, if the LLC is on extension, I don't think I can submit the $800 separately. My understanding is that this amount can only be submitted when the LLC returns are e-filed. I don't like the method 2 because the payment looks like for the current tax year instead of the next tax year.

I do hope Lacerte can set up something similar to the S Corp module that allows the estimated tax payments e-filed separately. 

[Karl]

If you've already filed a (presumably $0) extension, only Method 1 is available to you, and it'll work fine even pre-return-filing because you're using a separate e-file module.

I just did one like that earlier today. On extension already, but I was waiting for the owner to approve the auto-debit. E-filed a Q1 state estimate payment. Then after e-filing, Lacerte will prompt you to remove the checkboxes to auto-debit Q1 estimates.

Then you need to adjust next-year Q1 estimates to "-800" so it shows as already paid in the client letter.

[Jen998]

Karl,

Am I missing something? I am not able to do that in the partnership module for this annual tax payment of $800.  I only e-filed the federal extension; and no state extension was needed for no state tax due. Do you put this tax in the estimated fee payment 1st Qtr instead of annual tax payment in order to make the payment submitted? If yes, will FTB put this amount into different tax categories?

In the past, I always let all the LLC clients mail a check with the tax voucher 3522 (not 3536) when the LLC returns were on extension.  It was not convenient at all. That is the reason I brought this up here. 

[Karl]

Ah, I didn't realize you were in the partnership module. Just checked there, and the UI is different. I don't see the option to auto-debit separately. So my instructions would only work for the S-Corp module (possibly the individual module).

I would have clients pay online at ftb.ca.gov/pay. If you and they each sign up for a MyFTB account (you get authorization through FTB form 3534), you'll be able to see/verify the payments.

[Jen998]

Karl,

Thank you. Most of my clients prefer the old school (mailing the check). 🙂  Or I can make the e-payment via Lacerte.

I don't understand why Lacerte doesn't set up a separate estimated payment module for the LLC/partnership like the S Corp.

[Karl]

I try to be gracious and understanding with those clients. But my tagline to them is "I trust online banking 10x more than I trust the post office." And YOU charge extra if the government misapplies it to the wrong year by mistake and you need to help them fix it. 😉

I also find that walking through the e-payment method with them once often elicits a "wow! that wasn't as hard as I thought it would be!"