TY2020 CA 5805 Underpayment Calculation with Annualized Method doesn't use proper extension date due to COVID

Forum|Forum|5 years ago
January 11, 2021
1 reply
0 views

Form 5805 for California calculating an underpayment penalty using the annualized method is not properly taking into account the extended 540ES deadline to July 15. I made a large 540-ES payment on July 15 to account for capital gains in May, but the 5805 worksheets are flagging me as underpaid for the quarter ending June 15 and assessing a penalty.

I'm hoping this is just a bug in the early version of the form.

https://www.ftb.ca.gov/about-ftb/newsroom/covid-19/extensions-to-file-pay.html

https://ttlc.intuit.com/community/tax-topics/help/is-the-tax-deadline-delayed-what-to-[product key removed]avirus-covid-19-and-your-taxes/00/1330374

taxnightowlAuthor

Level 5

For now, TurboTax support is writing this off as the Forms not being final yet. This form will be final on Feb 11, 2021, so we'll see if the problem gets fixed.

AmyC

Level 15

Yes, once the form is finalized, the software can be updated- usually within a day. The IRS has delayed and does not begin accepting returns until February 12 so we all have a long way to go.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

taxnightowlAuthor

Level 5

An update just happened on Jan 30 which made the penalty calculation even further incorrect. 😞

The CA FTB has published the final 5805 and instructions some time ago, and I can see that Turbo Tax has the Payment Due Dates from the 5805 Instructions page 4 Worksheet II - Regular Method to Figure Underpayment and Penalty totally wrong. It has the first two installments due on 4/15/2020 and 6/15/2020, when they both should be 7/15/2020.

Why is TurboTax lagging so far behind what the CA FTB has already published?