Underpayment of estimated tax

[mdktech24]

Last month, I made the 4th quarter estimate payment (~$3,000 for state tax) even thought I didn’t make any payments for the previous 3 quarters. The reason is that after completing a ROTH IRA conversion in last December, I realized that I didn’t held sufficient California state tax.

TurboTax showed that I don’t owe any money in both of my Federal and State tax return and it didn’t generate a FTB 5805 for my state tax return. Should I submit this form to show the income was not earned evenly throughout the year and e-file with my return? If so, can TurboTax help me to generate this form for my state tax return?

[DavidD66]

If you don't have an underpayment of estimated tax on  your California return without filling out Form to show that your Roth Conversion income and estimated payment both occurred in the fourth quarter (i.e. all income, payments, and withholding occurred evenly throughout the year), then there is no need to fill out and submit Form 5805.   

[mdktech24]

Thank you for your reply. How do I know if I have an underpayment of the estimated tax? 

[BillM223 · Accepted solution]

If you are filing a California resident return, the underpayment of estimated tax is on line 113 on form 540.

As David said, if you have no underpayment of estimated tax, you can "declare victory and go home". i.e., not add form 5805. Generally taxing agencies don't want forms that are not required.