Hi,
I noticed a possible issue in TurboTax when filling out California Form 5805 (Underpayment of Estimated Tax).
In Part II, Line 5 (which should pull the tax shown on my 2023 tax return), TurboTax is incorrectly using the value from Part II, Line 2 (90% of Line 1) instead of the correct tax amount from the California Carryover Worksheet.
When I use Forms Mode and click on the incorrect value in Line 5, it correctly links to the appropriate number on the California Carryover Worksheet, but it does not actually transfer that number to Form 5805.
This mistake causes an incorrect calculation of the California safe harbor rule and wrongly applies an underpayment penalty even though I should have qualified for safe harbor.
Has anyone else experienced this issue? Is there a workaround to manually override or fix this?
Thanks!
