Using TurboTax Premier 2025 on Windows 11. All updates installed as of 4/17/2026. Using "step-by-step," State Taxes, Other situations, Underpayment Penalty. For question "Do you want to let the Fra...
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Using TurboTax Premier 2025 on Windows 11. All updates installed as of 4/17/2026. Using "step-by-step," State Taxes, Other situations, Underpayment Penalty. For question "Do you want to let the Franchise Tax Board calculate the penalty and send you a bill?", answer "No." I entered values for last year's state taxes that don't qualify for an exception. For question "Did you earn your income unevenly during the year?", I answered "Yes." Eventually, get to page where you press button "Include on Return" instead of "Let FTB Bill Me." That causes TurboTax to do calculations for California Form 5805. (BTW, prior to getting to this, there is a page that shows "Federal and California AGI Adjustments". However, these are really just California adjustments (bug).) After giving the above answers in the step-by-step, go to Form 5805, and there is a problem in the entries for Part III, line 6. According to FTB 5805 instructions, these deductions should be limited if, "in any quarter federal annualized income ... is greater than: - $504,411 (married/RDP filing jointly or qualifying surviving spouse/RDP). - $252,203 (single or married/RDP filing separately). - $378,310 (head of household)." The instructions provide a worksheet for how to reduce the deductions for income greater than these values. I found that if I entered an income above these values, the deductions were NOT reduced. It appears that TurboTax is not using the worksheet for Part III line 6 entries.