TT did not transfer estimated payments made on line 8 of tax payments worksheet to line 8 of 5805 "total of estimated payments made" and I am unable to enter it manually.
Because of that, TT reports that I owe a penalty for late payment of estimated taxes. I paid first installment on 10/16 as required, (allowed by CA due to storms of early '23) and overpaid for the year, but TT has calculated that I owe a penalty on CA form 5805 and has deducted from the overpaid amount.
You'll need to sign in or create an account to connect with an expert.
If you don't see the estimated payment amount on Line 8 of Form 5805, which is the "Short Method", but you did enter the California estimated tax payment in the Federal section, it should be included on the Form 5805 Worksheet II, which is the "Regular Method" for figuring underpayment and penalty.
The way the payments appear in the forms depends on how you answer the interview questions in the Underpayment Penalty section.
If you have taxes due with your return, a penalty for underpayment of estimated taxes is calculated by TurboTax, and you paid estimated tax within the extended time period for California disasters:
Visit or revisit the Other Tax Situations section and review the Underpayment Penalty information to confirm it is correct. Go through the interview and follow the prompts; when you get to the Penalty Waivers screen, answer "yes" if you qualify for a disaster exception, then "yes" at the next screen to request a waiver of the penalty, in all or part. Enter the reason in the field provided.
If you live in a federally declared disaster area and met the special filing and payment deadlines for that disaster, you qualify for an automatic underpayment penalty waiver. Even if the penalty is calculated on the return, the IRS should not charge the penalty.
See here for the IRS requirements for the California disasters for 2023.
If you get a notice from the IRS proposing to assess the penalty, see this IRS webpage for guidelines and next steps.
Because the Federal and state extended filing deadlines are available only for individuals living in areas impacted by official disaster declarations during specified dates, the deadlines themselves aren't updated in the software. The tax agencies made an administrative decision not to impose the penalties, but since the law itself didn't change, tax software including TurboTax still calculates the penalties.
The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. Therefore, taxpayers do not need to contact the agency to get this relief. However, if an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment, or deposit due date falling within the postponement period, the taxpayer should call the number on the notice to have the penalty abated.
See here for related information from the California Franchise Tax Board.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
Mikpi314
New Member
jteichma
Level 2
goradiah
New Member
YosemiteKT
Level 1
ash49
Level 2
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.