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How to adjust CA Underpayment Penalty for Q4 Estimated Tax Payment Relief

david3
Level 7

How do I adjust the CA Form 5805 underpayment penalty to give the TP relief for the Q4 payment that was due 1/17/23?

They were part-year CA residents in 2021 and full-year CA residents in 2022. They live in the disaster area.

The program is assessing the penalty on 90% of the 2022 tax liability and not the 2021 CA tax liability since they did not file a full year CA return in 2021.

I can't find anywhere in the program a way to waive the Q4 estimated payment penalty. How have those of you CA tax preparers handled this in PS?

Thank you.

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2 Comments 2
ptax255
Level 7

Hi, whats AGI?

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david3
Level 7

$321K.

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