CA form 5806

[bill_s2]

A Turbotax Business update has added CA form 5806 (Underpayment of Estimated Tax by Corporations).  The form includes calculation by quarter of whether estimated tax was underpaid.  The form (in Part II) clearly states that the form does not need to be filed if there was no underpayment.  I have no underpayment, but TT flags an error and says I need to fill in additional details later in the form (Part IV).  These details are not needed since the form does not need to be filed, according to both the TT form and the CA FTB instructions.   

How can I get the TT program to stop flagging this as an error?

3/19/2020: I note that the solution from @MikeSoCal949 only works for those that want FTB to calculate their underpayment.  Users still needing to use the program to do the calculation are unable to use this solution.

[AnotherUser]

I am having the exact same issue - To resolve it, since the form does not apply to me, I try to delete the form, and the form appears to be deleted, but subsequent checking simply flags the same fields in the supposedly deleted form and I can't move past this.

Why is this happening, and how do we get out of it?

[torstr]

ditto for me as well I need this fixed so I can file.

[bill_s2]

I checked and found that form 5806 is not included in the "required forms for filing" so it won't get submitted.  It's still not clear why this form was added and why its calculations result in error declarations that are not correct.

[AnotherUser]

Were you able to complete and file despite the errors?

[bill_s2]

I could have filed, and the form 5806 would not have been included, but I'm waiting until Monday.  CA FTB still lists on their website that all their forms are not done so I'll wait until the 3/16 deadline.  Interestingly enough, there is not a 2019 form 5806 or its instructions on the CA FTB website.

Not that I like cutting it that close, but I've never had an issue that delayed my e-filing.

[AnotherUser]

Yeah, this is the first time in something like 4 years of doing this that I haven't been able to simply delete an irrelevant form

[danielliu8]

Yes, I have same problem, I got 5806 error in CA state tax. I am not comfortable to file my CA state tax with this 5806 error. Looks like it is a bug in Turbotax software. I am unable to delete 5906 form either. Please let us know if any solution. thanks

[MikeSoCal949 · Accepted solution]

RESOLVED!

I ran into the same problem, and finally found a work-around that allowed me to transmit:

1. Delete CA return and start over using the instructions via the following link:

https://ttlc.intuit.com/community/state-taxes/help/how-do-i-clear-my-state-return-in-the-turbotax-fo...

2. Start the new CA return fresh. HOWEVER, immediately after the first couple of screens where you verify company info, and BEFORE getting to the screen where you enter how much tax you've already paid, you select FORMS in the top-right, then choose Form 5806 in the left navigation area, to display the form, THEN CHECK BOX B in the large framed box near the top with the title "Form 5806 Smart Worksheet".  When you check Box B, with description "Check this box if you want the FTB to calculate the underpayment penalty for this corporation.  Form 5806 will not calculate", you'll notice the remaining fields are all blanked out.

3. Click on the Step-by-step icon in the top right, and continue with your CA return.

You should have no issues with that form after that!

Mike

[danielliu8]

thanks, Mike!

Will try it tonight.

[AnotherUser]

Thanks Mike! This did work!

[danielliu8]

yes, it works fine. 

thank you very much!

[bill_s2]

I love it - a very practical workaround.  Part of the TurboTax guarantee that their calculations are correct is to prevent their calculations from occurring at all by letting the government calculate.  

[bill_s2]

I found that deleting the state return and starting over was not needed to clear the error.  Just switch to forms view and  check the box on form 5806 allowing the FTB to calculate any underpayment penalty.  Switch back to step-by-step and proceed.  When TT asks if you want to calculate the underpayment penalty anyway, say no!  It completed with no errors.

[MikeSoCal949]

That was the first thing I tried Bill.  Before deleting and starting over with the CA return, I checked Box B, but during the review TT still flagged all those other fields in the form as invalid.  Actually, in my case, I got through the standard review fine, but AFTER clicking on the Transmit button (when it is supposedly impossible to go back), TT flagged it with a message, "Just one more thing...we need to check....".  I think something was really hosed in their software at that point, which is why I decided to delete CA and start it over.  In any case, I'm glad my work-around worked for you, one way or another!

Mike