California Estimated Tax Question

Forum|Forum|11 months ago
April 19, 2025
1 reply
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My aunt had a zero tax liability in California in 2024 because her social security benefits were less than $25,000. She sold her house this year and will have a California AGI greater than $500,000 in 2025. Does she need to make estimated payments in California this year even though her 2024 tax liability was zero?

Vanessa A

It is always better to pay in the quarter you receive the money instead of applying for a penalty waiver.

However, CA does follow the IRS steps for penalty waiver. If her last year tax liability was $0, then she would be able to apply for the penalty waiver if she does not pay until 2025.

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