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Returning Member
posted Apr 19, 2025 7:50:25 AM

California Estimated Tax Question

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?

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1 Replies
Expert Alumni
Apr 21, 2025 8:50:39 AM

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.