Some years ago, California added the requirement to pay 30% of estimated taxes by the Q1 deadline, another 40% by the Q2 deadline, nothing by the Q3 deadline, and the remaining 30% by the Q4 deadline. It is not clear to me what the penalties might be if, for example, 70% is not paid by that Q2 deadline, even if more than 100% is paid by the Q4 deadline. Can someone tell me, generally, how that penalty, if any, would be figured?
Also, for my likely situation this year, there is this safe harbor of paying 110% of the prior year's tax and I plan to do that, but am unclear how that interacts with the aforementioned 30%/40%/0%/30% profile that I just noted above. Does it mean that, for example, as long as I pay 70% of 110% of last years' tax by the Q2 deadline, I should have no penalty even if my 2022 tax bill ends up being even higher (due to a late year decision to do a Roth conversion)?
Thanks much!
