California automatically grants an extension of time to file. Electronically filed extensions are only allowed when there's an amount due and will be paid by direct debit from a bank account.
If the client is filing Form 3519, Payment for Automatic Extension for Individuals and wants to submit an electronic payment, you need to indicate this in Lacerte.
Follow these steps to indicate that the taxpayer wants to make an electronic payment for Form 3519:
- Go to Screen 9, Extensions.
- Under Automatic Extension (4868), enter a 1 in the field 1=automatic extension, 2=blank (MANDATORY).
- Locate the California Information section.
- Check the box to Efile California state extension.
- This is for the extension payment.
- Complete the applicable fields with information for the purposes of Form 3519:
- Income tax (-1=none)[O]
- This amount overrides the total tax liability calculation.
- Enter -1 if the total tax liability is zero.
- Income tax withheld [O]
- This amount overrides the income tax withheld calculation.
- Enter -1 if the withholding is zero.
- 2023estimated tax payments [O]
- This amount overrides the estimated tax payments calculation.
- Enter -1 if estimated tax payments weren't made.
- Other payments and credits [O]
- Enter the excess State Disability Insurance (SDI) tax or enter -1 if excess SDI is zero.
- This amount overrides the excess SDI calculation.
- Form 3519 payment (defaults to amount due) [O]
- Income tax (-1=none)[O]
Lacerte calculates the extension payment based on all entries in the tax return or the override entries in this section. If the taxpayer is paying an amount different from the calculated amount, enter the amount in the Form 3519 payment (defaults to amount due) [O] field.
- Go to Screen 1, Client Information.
- Scroll down to the Taxpayer Contact Information section and make sure there's a phone number entry.
- Go to Screen 3, Miscellaneous Info./Direct Deposit.
- Under the Miscellaneous section, make sure the Daytime phone: 1=print, 2= print (suppress when options), 3=suppress [O] isn't marked to suppress the phone number.
- This option also exists in the User Options - Tax Return tab.
- If suppressed, the extension will reject with the following error: /CA-PaymentRequest/CA-PaymentRequestData/CA-Payment/PaymentInformation.
- Scroll to the Direct Deposit of Refund / Electronic Payment section and complete the Financial Institution #1 section.
- Scroll down to the California Direct Deposit of Refund / Electronic Payment section and check the box for Electronic payment of tax due with extension.
- You should only enter bank information in this section if it differs from the bank information entered for the federal return.
Once you complete these steps, select the E-File menu and choose Start e-file extension wizard... to submit the California extension with payment.
When electronically filing the federal extension, the CA extension must be unchecked in the e-file wizard to prevent it from going in error.
California also provides the following options to make extension payments:
- Paying with a credit card
- Paying with a check or money order
- Paying online
See the Instructions for Form FTB 3519 for details on payment instructions and requirements.
