DavidS127
Expert Alumni

State tax filing

This FTB website has information on Additional tax on early distributions at 2.5%. Although it is specific to retirement plans, I suspect CA is using the same form for 529 plan distributions considered "early" in CA. 

 

The link to the Form 3805P at the bottom of that page takes you to the form, and you can see that Part II is for your situation.  But,  Line 6, Distributions.....not subject to additional tax refers you to the instructions.  The link to the instructions for some reason takes you to an email sign-up page to get the instructions emailed to you.  But, you can access the 2018 CA Form 3805P Instructions at this link.  Using the 2018 instructions, all of your "early distributions" on Line 5 are subject to the 2.5% additional tax.

 

The regular income should calculate correctly when you enter the earnings.  For the penalty, you will need Form 3805P, so look for that form or "additional tax/early distribution" section in the CA state return interview questions.

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