The 2023 federal estimated tax worksheet is failing to calculate 110% of prior year tax if AGI > $150,000. Is anyone else experiencing this issue?

[Sean Noggle]

I have tried changing the method, but it is still calculating 100% of prior year tax or 90%/100% of projected 2023 tax.  Is this a glitch with ProConnect Tax Online?  

[George4Tacks]

Have you looked at the ES Wkshts? Are you sure it needs to be 110%?

[Sean Noggle]

Hey George - in what instances would a MFJ taxpayer with over a $100K liability on the previous year's tax return not need to calculate tax at 110% of prior year AGI?  

[George4Tacks]

https://www.ftb.ca.gov/forms/2023/2023-540-es-instructions.html

C. Limit on the Use of Prior Year’s Tax

Individuals who are required to make estimated tax payments, and whose 2022 California adjusted gross income is more than $150,000 (or $75,000 if married/RDP filing separately), must figure estimated tax based on the lesser of 90 percent of their tax for 2023 or 110 percent of their tax for 2022 including AMT. This rule does not apply to farmers or fishermen.

Taxpayers with 2023 California adjusted gross income equal to or greater than $1,000,000 (or $500,000 if married/RDP filing separately), must figure estimated tax based on their tax for 2023.

[Sean Noggle]

George - I am referring to federal estimated taxes, not California.  

[George4Tacks]

Sorry, early here.

Again, did you look at the ES Worksheet. I agree, someone with that high of a tax this year is likely in the 110% category. Does the worksheet show that next year's income will be less? 

If you feel the computation is incorrect, you should call or chat with support, as they can review your numbers with you.