Thank you for the data file. I see where the figure on Line 5 of the Form 5805 is coming from. It appears to be correctly using 90% of the current year liability because the AGI was over $1,000,000 in the sample return.
If you right click in a numerical field and select "Data Source" from the pop up screen, TurboTax should show the data source for that field. In this case, it provided a window that states for Line 5:
If the California AGI is less than $1,000,000 ($500,000 if married/RDP filing separately) then from:
Carryover Worksheet P/Y Tax Liability
minus
Carryover Worksheet P/Y Tax on Lump Sum Dist
minus
Carryover Worksheet P/Y Excess CA SDI Tax W/H
Otherwise from Line 2: (which was 90% of the current year tax).
The AGI on the test return exceeded $1,000,000, so the Form 5805 used the amount on Line 2 for Line 5.
The 2023 instructions for the form state:
If the California AGI on your 2023 tax return is equal to or greater than $1,000,000/$500,000 if married/RDP filing separately, enter 90 percent (.90) of the tax liability from your 2023 tax return on line 5.
The 2024 form states for line 6:
6 Required annual payment. Enter the smaller of line 2 or line 5. (If your California AGI is equal to or greater than $1,000,000/$500,000 for married/RDP filing a separate return, use line 2)
I am referring for further review the fact that the data source pop up window for Line 5 is confusing. The instructions for the form do state that if the AGI is over $1mil, to use Line 2 for Line 5 as well as Line 6.
The California form itself is confusing because it doesn't show that instruction for Line 5.
[Edited 03/25/25] 5:30pm PST]
@ca76 (edited)
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
