Are you prepared for the upcoming California state tax filing deadlines? You may be surprised to learn that California grants an automatic extension to file your taxes until October 15, 2024.
This extension can be a game-changer for many business owners. So, how can this impact your business, and what else should you know about the California state tax extension in 2024? Keep reading to unleash the details and help you navigate this process smoothly.
What is the California State Tax Extension for 2024?
Who Qualifies for the California State Tax Extension in 2024?
California provides an automatic six-month extension to file your 2023 tax return until October 15, 2024. No need to file a separate form to qualify. But, while this extension gives you more time to file your state income tax return, it doesn’t extend the due date to pay taxes.
Both individuals and businesses benefit from this, but you still need to assess whether you owe California state income tax or CA state taxes by the April 15 deadline. Make sure your taxable income is accurate to avoid penalties from the California Franchise Tax Board.
Does an Extension Mean I Don’t Have to Pay by April 15?
No, filing an extension only delays submitting your tax return, not your payment. If you owe state of California or federal taxes, you must still pay by April 15, 2024 to avoid penalties. California’s income tax rates can vary, so make sure to estimate what you owe accurately based on the taxable income from 2023.
You can use Form FTB 3519 to file an extension and submit your estimated taxes to the California Franchise Tax Board. Missing this payment deadline may result in penalties and interest, and can impact any refund you might expect. Even if you're waiting until October to file, the IRS and state will still expect you to pay on time.
Further Reading: Find out how to check the status of your California state tax refund
How Do You File for a California State Tax Extension in 2024?
Is It Automatic or Do You Have to File a Form?
California grants an automatic six-month extension for filing your 2023 California tax return—you don’t need to file a form unless you owe taxes. If you do owe, submit Form FTB 3519 with your payment to the California Franchise Tax Board by April 15 to avoid a late filing penalty.
For nonresident or tax-exempt filers, confirm if you qualify for any exemptions when filing. Keep in mind, this extension applies only to filing, not paying, so you need to assess your taxable income early and pay taxes on time.
What Happens if You Miss the Payment Deadline?
If you miss the April 15 payment deadline, expect to be hit with a penalty and interest charges from the state of California. The Franchise Tax Board applies a 5% penalty on unpaid individual income tax plus interest on what you owe.
Filing your state income tax return late can make things worse, so it's best to settle your 2023 tax payment on time. Also, keep in mind the California tax rates and state sales tax rate (currently 7.25 %) to avoid further surprises. If you’ve underpaid your estimated taxes, now is the time to catch up to avoid a hefty bill.
Further Reading: Know how to determine if you need to file a tax return
Key Deadlines for California Income Tax in 2024
What Are the Important Due Dates You Need to Know?
For 2023 California taxes, the key dates are April 15, 2024 for tax payments and October 15, 2024 if you're taking the automatic extension to file your state income tax return.
If you're self-employed or making quarterly payments, your estimated taxes are due on April 15, June 17, September 16, and January 15, 2025. This applies to both federal income tax and ca state taxes. Keeping these deadlines in mind is essential to avoid late filing penalties and potential issues with your income tax returns.
Can You Amend Your Return After the Deadline?
Yes, California allows you to amend your 2023 California tax return even after filing. If you discover an error or missed deduction, you can file an amended return using Form 540X. This doesn’t extend your payment due date, though—if you owe additional taxable income after amending, you’ll be charged penalties and interest.
Whether you file jointly or individually, be sure to review your exemptions and standard deductions thoroughly to minimize potential issues. If you're a California resident or filing as a nonresident, this option can help you correct mistakes and avoid larger problems with the state’s tax system.
How the California State Tax Extension Affects Your Business in 2024
Should Business Owners Take Advantage of the Extension?
For business owners, taking advantage of California’s automatic six-month extension to file your individual tax return can offer valuable breathing room. If the tax year has been hectic or your books aren’t fully prepared, you’ll now have until October 15th to file your tax return.
This is especially useful if your business spans multiple income sources or needs detailed tax preparation. But, keep in mind that the extension doesn’t delay your tax payments—those are still due by April 15th. Failing to pay on time may trigger penalties, including a potential levy on assets, so you must file Form FTB 3519 if you owe ca tax.
How Does the Extension Impact Your Estimated Payments?
The extension won’t affect your schedule for paying estimated taxes. You’ll still need to make your quarterly payments, whether it's for state or local tax, on the usual dates in April, June, September, and January. If your business deals with California sales or you’re calculating social security and exempt amounts, your payment deadlines remain the same.
Missing these deadlines can lead to penalties, so make sure you stay on top of payments, especially if you're in higher tax brackets like 13.3 % or 10.75%. Having an accurate projection of your taxable income will help avoid surprises when filing California state taxes. Working with a professional to assess whether you qualify for certain deductions or exemptions can make a big difference.
Further Reading: Explore how your federal tax dollars are spent
Key Takeaways
- Automatic Extension: California provides an automatic extension for the taxpayer until Oct to file.
- No Form Needed: Taxpayers don’t need to file a form unless taxes vary and are owed.
- Payment Due: Estimated taxes must be paid by April 15, 2024, to avoid penalties.
- Form FTB 3519: Use this form to pay if you owe taxes and need an extension until Oct.
- Online Option: Pay taxes online through the California Franchise Tax Board website.
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