I live in California. I have had to pay estimated taxes for some time now. In 2007 my wife and I maxed out on out 403b (x2) and my 457 plus had additional $$ taken out of our paychecks to go towards taxes and our investment income from almonds was far less than it was in 2006. As a result we over paid taxes by close to $30,000 in 2007. Per turbo tax we will have to pay CA state tax on our Federal return which comes out to be about $5,000. Is this correct? Not the exact $$ amount but the concept. What makes me think I'm missing something is.....the money we used to pay the estimated income was already taxed $$ (had to be claimed as income for 2007) so why is CA requring us to pay taxes again on $$ that was already taxed? Turbo Tax is pretty darn good however this is the firts time I have had to question it.