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Financial Planning / Tax Strategies
|Subject: Re: Safe Harbor State of California||Date: 7/13/2013 3:34 PM|
|Author: ptheland||Number: 118862 of 125707|
Is the State of California safe harbor similar to federal, 110% of last years tax liability?
More or less, yes.
It's 100% of last year's tax if your AGI is under $150k ($75k for married filing separate). Over that AGI it's 110% of last year's tax.
If your AGI is over $1 million, you don't get this exception. Instead you need a good crystal ball so that you can pay in 100% of your tax. (In reality, at that income level, you have to use annualized installments to avoid a penalty AND keep from grossly overpaying your taxes.)
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