Where Do I Enter Taxes Paid With CA 3519 on My State Tax Return?

Paying taxes on time is crucial to avoid penalties, and California taxpayers who need extra time to file often use Form 3519 to make an estimated payment. This form allows individuals to meet their state tax obligations even if they haven’t completed their full return by the deadline. However, once it’s time to file, knowing where to report that payment can be confusing.

Understanding how to properly enter this payment on your state tax return ensures you receive credit for what you’ve already paid.

Filing Deadlines and Payment Requirements

California taxpayers who expect to owe state income tax must be aware of deadlines to avoid late fees and interest charges. The standard due date for filing a California state tax return and making any required payments is April 15. If this date falls on a weekend or holiday, the deadline moves to the next business day. While the state grants an automatic six-month extension to file, this does not extend the time to pay taxes owed. Payments must still be made by the original due date to avoid penalties.

The California Franchise Tax Board (FTB) imposes a late payment penalty of 5% of the unpaid tax, plus an additional 0.5% for each month the balance remains unpaid, up to a maximum of 25%. Interest also accrues, calculated using the federal short-term rate plus 3%. These charges can add up quickly, making timely payment essential.

Taxpayers who cannot pay in full by the deadline have options to minimize penalties. Partial payments reduce the amount subject to interest, and the FTB offers installment agreements for those who qualify. To be eligible, individuals must owe less than $25,000 and be able to pay off the balance within five years. Applying for a payment plan can help avoid collection actions such as wage garnishments or bank levies.

Completing FTB Form 3519

When taxpayers need additional time to file their California state tax return but expect to owe money, they can use Form 3519 to make a payment. This form serves as an extension payment voucher, ensuring estimated tax liability is covered to avoid penalties and interest.

Payment Calculation

To determine the amount to pay with Form 3519, taxpayers must estimate their total California state tax liability. This involves calculating taxable income, applying the appropriate tax rates, and subtracting any credits or withholdings. California’s income tax rates for 2023 range from 1% to 13.3%, depending on taxable income and filing status.

For example, if a taxpayer estimates their total state tax liability to be $5,000 and has already had $3,500 withheld from their paycheck, they would need to pay the remaining $1,500 with Form 3519. Underpaying may result in additional penalties and interest, while overpaying will lead to a refund or a credit toward the next year’s taxes. Using prior-year tax returns as a reference can help in making a more accurate estimate.

Payment Methods

The FTB offers multiple ways to submit a payment with Form 3519. Taxpayers can pay electronically through the FTB’s Web Pay system, which allows direct withdrawals from a bank account without additional fees. Credit and debit card payments are also accepted, though they come with a processing fee.

For those who prefer to pay by mail, a check or money order can be sent along with the completed Form 3519. Payments should be made payable to the “Franchise Tax Board” and must include the taxpayer’s Social Security number or Individual Taxpayer Identification Number, as well as the tax year being paid. Mailing the payment early ensures it is processed on time, as postmark dates determine whether a payment is considered timely.

Submission

Form 3519 can be submitted electronically or by mail. If paying online, the form does not need to be mailed separately, as the payment is automatically recorded. However, if sending a check or money order, the completed form must be included to ensure proper processing.

The mailing address for Form 3519 payments depends on whether a payment is enclosed:

If a payment is included:

Franchise Tax Board
PO Box 942867
Sacramento, CA 94267-0008

If no payment is included:

Franchise Tax Board
PO Box 942840
Sacramento, CA 94240-0008

Taxpayers should retain a copy of the completed form and proof of payment for their records. If a payment is made electronically, a confirmation number should be saved as evidence of submission.

Reporting the Payment on Your Tax Return

When filing a California state tax return, taxpayers must ensure that any payments made with Form 3519 are properly reported to receive credit toward their total tax liability. These payments are treated as estimated tax payments and should be included on the appropriate line of Form 540 or Form 540NR, depending on residency status.

For 2024 tax returns:
– Form 540 filers should report the payment on line 72.
– Form 540NR filers should enter it on line 81.

Failing to report the payment correctly may result in an incorrect tax bill or delayed processing of a refund. The FTB’s system matches reported payments to taxpayer accounts, but discrepancies can occur if the wrong amount is entered or if the payment was applied to a different tax year.

To avoid errors, taxpayers should verify their payment history before completing their return. This can be done by accessing their FTB MyFTB account, where a record of all payments, including those made with Form 3519, is available. If a payment does not appear, it may have been misapplied, requiring a call to the FTB to correct the issue before filing.

Tax software and professionals typically prompt filers to enter any extension payments, but those completing paper returns must manually include the amount. If the payment is omitted, it could lead to an unexpected balance due, triggering late payment penalties and interest. Similarly, if the payment is mistakenly entered twice, the FTB may flag the return for review, potentially delaying any refund.

Proof of Payment and Documentation

Maintaining proper records of tax payments is important for resolving discrepancies and ensuring compliance with California tax laws. The FTB may request proof of payment if there is a mismatch between reported amounts and their records. Taxpayers should retain copies of bank statements, canceled checks, or online payment confirmations to substantiate any payments made with Form 3519.

Electronic payments generate immediate confirmation numbers, which should be saved along with a printout or screenshot of the transaction. For those who pay by check or money order, obtaining a photocopy before mailing can provide a safeguard against lost or misapplied payments. Additionally, using certified mail or requesting a return receipt can establish proof of timely submission, which may be useful if penalties are assessed due to processing delays.