Since the FTB (Franchise Tax Board) receives both your Form 540 and your Form 5805, a mismatch on this line is a high-risk "flag" for an automated notice. here is how to fix.
If working in Desktop.
- Switch to Forms Mode.
- Open Form 5805, Part III.
- Locate Line 6, Column (d).
- Right-click the field and select Override.
- Manually type in the exact amount from your Form 540, Line 18 (your final itemized deductions).
If working online, your best choice is to delete form 5805 and then select the option: "I want the Franchise Tax Board to calculate my penalty and send me a bill." in your California State interview. To delete.
- Go to Tax Tools
- Tools
- Delete a form
- Delete 5805
The FTB will use your final Form 540 deductions to run their own annualization. They'll see your income was uneven and will likely calculate a lower penalty than the software did.
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