How soon do you need to pay state taxes if you owe money in 2025?

Thanks for the info! Do payment plans with the state usually have setup fees like the federal ones do? And would I still avoid any penalties if I set up a payment plan before the due date?

Most states do charge setup fees for payment plans, but they're typically lower than the federal fees. For example, many states charge $20-50 compared to the IRS which can charge up to $149 depending on your payment method. If you set up a payment plan before the due date, you'll still likely incur interest on the unpaid balance, which is unavoidable. However, you can often avoid the larger failure-to-pay penalties that would otherwise be applied if you missed the deadline completely. The interest rates vary by state but are usually similar to the federal rate (currently around 7%).

Does it work for all states? I'm in California and their tax system is a nightmare compared to when I lived in Texas (no state income tax there).

I've seen a bunch of these tax tools pop up lately... how's this different from TurboTax or those other big companies? feels like everything wants a subscription these days lol

It absolutely works for California! They actually have specific state-by-state guidance, and California is one of their most comprehensive sections because of how complex the state tax code is there. It'll show you all the California-specific deadlines and requirements. The main difference from TurboTax is that this isn't a filing tool - it's specifically for analyzing documents, finding missed deductions, and giving personalized advice on deadlines and payment options. It's more focused on answering specific tax questions and clarifying confusing notices rather than the actual filing process. No subscription needed for basic questions either, which was a refreshing change.

How does that even work? The state tax departments always have those automated phone trees and endless holds. Do they just keep calling for you or something?

Sounds like a scam tbh. No way they can magically get through phone lines that are jammed with thousands of callers. They probably just charge people for something you could do yourself if you're persistent enough.

The service basically uses tech to navigate the phone tree and wait on hold for you. When they reach a live person, you get a call connecting you directly to the agent. It's not that they have special access - they're just automating the painful waiting part. They don't charge you unless you actually get connected to someone. I was skeptical too, but when I was facing penalties for a late payment and desperately needed to set up a payment plan, it was totally worth it. Most state tax agencies actually do answer eventually - the problem is the 1-2 hour wait times that most people can't sit through.

I didn't know about first time abatement for state taxes! Do you know which states offer this? I've always filed and paid on time before this year.

Not all states offer it, but quite a few do. California, Illinois, Massachusetts, and New York are some of the larger states that have some version of penalty abatement for first-time issues. Some call it "reasonable cause" relief rather than first-time abatement. The key is to request it explicitly - they almost never offer it automatically. You typically need to have a clean compliance history for the past 3-4 years to qualify. The requirements vary by state, but it's definitely worth asking about when you call to set up your payment plan.

I did this last year. The penalties and interest only apply to the unpaid portion. So if you owe $1000 and pay $700 by the deadline, you'll only be charged penalties on the remaining $300. Definitely better than paying nothing by the deadline!