Reply To: Single RMD in December considered evenly distributed for California?

Home Fairmark Forum Other Tax Topics Single RMD in December considered evenly distributed for California? Reply To: Single RMD in December considered evenly distributed for California?

#4723
kaneohe
Participant

I believe CA treatment of income is similar to the federal. The default, unless you elect the annualized income method, is to get the annual tax due and then determine the safe harbor amount to be paid. You then, for CA, expect 30% paid for Q1 and Q4 and 40% in Q2. This method does not ask about timing of income so the assumption is that it is evenly distributed during the yr.

You can elect the annualized income method which considers the timing of income so may be more favorable if you have income late in the yr. This comes at the price of much greater complexity.

See form 5805 and instructions. https://www.ftb.ca.gov/forms/2018/18-5805-instructions.html https://www.ftb.ca.gov/forms/2018/18_5805.pdf