CA April 15, 2021 estimate calculation based on prior year 'actual tax' - Spidell

CA April 15, 2021 estimate calculation based on prior year ‘actual tax’

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Message Board CA April 15, 2021 estimate calculation based on prior year ‘actual tax’

  • This topic has 2 replies, 2 voices, and was last updated 2 days, 3 hours ago by Nancy Richards.
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    • #298196
      Nancy Richards
      Participant

      Curious how folks are calculating the April 15, 2021 CA estimated tax payment if there were nondeductible PPP loan expenses and a recognizable EIDL grant during 2020? Actual prior year tax can materially distort the 2021 estimated tax payments. I foresee using prior year tax modified for the PPP expenses and EIDL grant.

    • #298237
      Lynn Freer
      Participant

      If you’re using the prior year exception it has to be 100 or 110% of the 2020 tax. It’s easiest to use the prior year but you can always estimate the current year

    • #298248
      Nancy Richards
      Participant

      Thank you, Lynn. Agree. There is no easy way around this. In addition, I’m assuming FTB is following the scant IRS guidance in that the May 17th – due date – overpayment applied might not be applied to the April 15th estimate?

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