topic Received a check for overpayment on CA form 5805 for estimate penalties in State tax filing

Received a check for overpayment on CA form 5805 for estimate penalties

oldguy2u — Fri, 28 Feb 2025 15:49:17 GMT

Spent an hour on the phone with an CA FTB chat person who finally said simply "You overpaid your tax

for 2024 and subsequently indicated the overpayment was associated with form 5805.

A review of that form did not reveal the answer as to what caused the overpayment. Seem like this form has been problematic for a number of years.

Hopefully someone is aware of this and a fix is in the offing. In the meantime an answer to the question, "why did this happen?", would be helpful...

TIA

Re: Received a check for overpayment on CA form 5805 for estimate penalties

ThomasM125 — Fri, 28 Feb 2025 15:58:24 GMT

Form 5805 is used to calculate the penalty for underpaying your estimated taxes for California. If you received a check referencing that form, it would indicate that you were penalized in the current or previous year for underpaying your estimated tax and some or all of that penalty has been refunded to you. Without knowing your history as it relates to estimated taxes due and paid in, we wouldn't be able to furnish a more precise answer to your query.

Re: Received a check for overpayment on CA form 5805 for estimate penalties

oldguy2u — Fri, 28 Feb 2025 16:35:57 GMT

Probably did not make my point clearly. There is likely a disconnect between the way the FTB sees the 5805 and the logic employed by the Turbotax software. My point is that this shouldn't happen and there needs to be a fix. If there is anyone from the TT staff who is interested I can provide more details. However, the fix is to compare the Turbotax logic to that which the FTB uses.

Based on my review of postings on the very subject/form for previous years, the fixes have yet to yield proper results.

BTW, my background is reviewing software products and creating apps (programs if you will) for unusual situations.

Re: Received a check for overpayment on CA form 5805 for estimate penalties

BillM223 — Fri, 28 Feb 2025 16:50:03 GMT

Well, I don't know what issue you are talking about, either. "My point is that this shouldn't happen and there needs to be a fix." What is "this" in the previous sentence? Saying that there is a difference between the way the FTB does the 5805 and the way that TurboTax does the same form doesn't really tell me the issue.

Perhaps you can respond with some of the other Community links that you are talking about.

BTW, my background includes writing and supporting the software (for another vendor) for the 2220, the corporate version of the 2210 (which looks very similar). Details and/or examples, please.

Re: Received a check for overpayment on CA form 5805 for estimate penalties

oldguy2u — Fri, 28 Feb 2025 17:08:37 GMT

How about just plugging in "California form 5805" in the search box above?

Re: Received a check for overpayment on CA form 5805 for estimate penalties

VolvoGirl — Fri, 28 Feb 2025 17:17:47 GMT

The underpayment penalties for Federal and state are an estimated amount. It is common and expected for the IRS or state to recalculate it and send you a refund or a bill for more. You can select to leave it off and let the IRS or state to calculate any penalty. It can't calculate it accurately, like Turbo Tax doesn't know when they will get your tax due payment among other things.

And you might be able to eliminate it or at least reduce it by annualizing your income and payments. You can go to Federal Taxes tab or Personal tab, under Other Tax Situations and select Start by the Underpayment Penalties. You will answer a series of questions that may reduce or eliminate the penalty. It's form 2210 for federal. State should have a similar section.

Re: Received a check for overpayment on CA form 5805 for estimate penalties

BillM223 — Mon, 03 Mar 2025 17:33:13 GMT

oldguy2u

Of course I did search for California 5805 questions in the Community, but there are many on a number of different issues.

It would be very helpful if you would give me the links instead of me guessing which ones you are referring to.

@oldguy2u

Re: Received a check for overpayment on CA form 5805 for estimate penalties

oldguy2u — Fri, 28 Feb 2025 17:38:57 GMT

Been paying estimated tax payments for many years. Previously prepared by an accountant; my tax situation is now much less complicated so I switched to Turbotax. At no time was my penalty calculation ever incorrect nor did I ever receive a notice or a check re that calculation.

Perhaps it would be useful to allow this thread to lapse.

Thank you