How to e-pay California estimated taxes in ProConnect Tax

California law mandates electronic payments (e-pay) of estimated taxes. The law requires you to e-pay all future payments once you:

• Make an estimated tax or extension payment (by check-electronic method) over $20,000 for a taxable year beginning on or after January 1, 2009; or
• File an original return with a tax liability over $80,000 for a taxable year beginning on or after January 1, 2009.

After meeting either of these conditions, you must e-pay all future payments regardless of type, amount, or tax year. E-payment methods include the CA Franchise Tax Board (FTB) Web Pay, electronic funds withdrawal (EFW) when e-filing, credit card, or pay-by-phone. See the FTB website for details on payment options.

If your client’s met the e-pay threshold:

1. Go to the Input Return tab.
2. Select General.
3. Select Misc. Info/Direct Deposit.
4. Select the CA tab.
5. Under California Miscellaneous, select the box labeled Requires electronic payments.

After selecting the box, the program will add a reminder in the client letter instructing them to e-pay any balances due to the state, including quarterly estimate installments. The program will also suppress Form 540-ES and possibly Form 540-V. See the related topics below for information on transmitting EFW payments to the state directly through ProConnect Tax.

Related topics:

• E-filing quarterly estimates in ProConnect
• Setting up electronic payment with an e-file return, extension, or estimate in ProConnect
• Electronic payment of federal estimates for an individual return in ProConnect