California Underpayment of Estimated Tax by Individuals

Underpayment of Estimated Tax by Individuals
2023 Form 5805 Underpayment of Estimated Tax by Individuals and Fiduciaries
TAXABLE YEAR

2023

Underpayment of Estimated Tax
by Individuals and Fiduciaries

CALIFORNIA FORM

5805

Attach this form to the back of your Form 540, Form 540NR, or Form 541. Also, check the box for underpayment of estimated tax
located on Form 540, line 113; Form 540NR, line 123; or Form 541, line 44, whichever applies.
Name(s) as shown on return

SSN, ITIN, or FEIN

IMPORTANT: In most cases, the Franchise Tax Board (FTB) can figure the penalty for you and you do not have to complete this form.
See General Information B.
If you meet any of the following conditions, you do not owe a penalty for underpayment of estimated tax. Do not complete or file
this form if:
• The amount of your tax liability (not including tax on lump-sum distributions and accumulation distribution of trusts) less credits
(including the withholding credit) but not including estimated tax payments for either 2022 or 2023 was less than $500 (or less than
$250 if married/RDP filing a separate return).
• Your 2022 return was for a full 12 months (or would have been if you were required to file) and you did not have any tax liability
on that return.
• The amount of your withholding plus your estimated tax payments, if paid in the required installments, is at least 90% of the tax shown
on your 2023 return or 100% of the tax shown on your 2022 return (110% if California adjusted gross income (AGI) was more than
$150,000 or $75,000 if married/RDP filing a separate return) and you are not using the annualized income installment method. Taxpayers
with California AGI equal to or greater than $1,000,000 (or $500,000 if married/RDP filing a separate return) must use the tax shown on
their 2023 tax return if they do not meet one of the two conditions above.
Part I
1

2

3

Questions. All filers must complete this part. Estates and Trusts, see General information E.

Are you requesting a waiver of the penalty? If “Yes,” provide an explanation below and be sure to check the box
on Form 540, line 113; Form 540NR, line 123; or Form 541, line 44. If you need additional space,
attach a statement. See General Information C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

Yes

No

Did you use the annualized income installment method? If “Yes,” see instructions for Part III and be sure
to check the box on Form 540, line 113; Form 540NR, line 123; or Form 541, line 44 . . . . . . . . . . . . . . . . . . . . . . . . .2

Yes

No

Was your California withholding not withheld in equal installments and are you able to show the
actual amounts withheld per period and the actual dates withheld? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3

Yes

No
N/A

If “Yes,” enter the actual uneven amounts withheld on the spaces provided below. The total of the four amounts must equal the total
withholding reported on Form 540, line 71 and line 73; Form 540NR, line 81 and line 83; or Form 541, line 29 and line 31.

4

4/15/23

$

;

6/15/23

$

;

9/15/23

$

;

1/15/24

$

.

For estates and trusts: Was the date of death less than two years from the end of the taxable year?
See General Information E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4

For Privacy Notice, get FTB 1131 EN-SP.

7671233

Yes

FTB 5805 2023 Side 1

No

Part II

Required Annual Payment. All filers must complete this part.

. 00

1

Current year tax. Enter your 2023 tax after credits. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

2

Multiply line 1 by 90% (.90). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

3

Withholding taxes. Do not include any estimated tax payments on this line. See instructions . . . . . . . . . . . . 3

. 00

4

Subtract line 3 from line 1. If less than $500 (or less than $250 if married/RDP filing a separate
return), stop here. You do not owe the penalty. Do not file form FTB 5805 . . . . . . . . . . . . . . . . . . . . . . . . . . 4

. 00

5

Enter the tax shown on your 2022 tax return. See instructions. (110% (1.10) of that amount if the
adjusted gross income shown on that return is more than $150,000, or if married/RDP filing a
separate return for 2023, more than $75,000). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

. 00

Required annual payment. Enter the smaller of line 2 or line 5. (If your California AGI is equal to or
greater than $1,000,000/$500,000 for married/RDP filing a separate return, use line 2) . . . . . . . . . . . . . . . . 6

. 00

6

. 00

Short Method
Caution: See the instructions to find out if you can use the short method. If you answered “Yes’’ to Question 2 in Part I, skip this part and go to Part III.
If you answered “No’’ to Question 2 in Part I and you cannot use the short method, go to Worksheet II, Regular Method to Figure Your
Underpayment and Penalty, on page 4 of the instructions.
7

Enter the amount, if any, from Part II, line 3 above . . . . . . . . . . . . 7

. 00

8

Enter the total amount, if any, of estimated tax
payments you made . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

. 00

9

Add line 7 and line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

. 00

10

Total underpayment for the year. Subtract line 9 from line 6. If zero or less, stop here.
You do not owe the penalty. Do not file form FTB 5805 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

. 00

11

Multiply line 10 by .04799165 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

. 00

12

•
•

If the amount on line 10 was paid on or after 4/15/24, enter -0-.
If the amount on line 10 was paid before 4/15/24, enter the result of the following computation:
Amount on
Number of days paid
line 10
X
before 4/15/24
X
.00019 . . . . . . . . . . . . . . . . . . . 12

. 00

13

PENALTY. Subtract line 12 from line 11. Enter the result here and on Form 540, line 113;
Form 540NR, line 123; or Form 541, line 44. Also, check the box for “FTB 5805.’’ ▶ . . . . . . . . . . . .

Side 2 FTB 5805 2023

7672233

13

. 00

Part III Annualized Income Installment Method Schedule.
Use this schedule ONLY if you earned taxable income at an UNEVEN RATE during 2023 (see Example A). If you earned your income at approximately the
same rate each month (see Example B), then you should not complete this schedule. If you choose to figure the penalty, see Worksheet II, on page 4 of
the instructions.
Example A: If you were a commissioned salesperson who earned no income during the first three months of the year, earned most of your income during
the following six months, and earned very little during the last three months, you should complete this schedule. You may be able to benefit by using the
annualized income installment method. The required installment of estimated tax figured using the annualized method may be less than your required
installment figured using the required installment method.
Example B: If you worked all year and earned a monthly salary that did not change much during the year, you should not complete this schedule.
To complete this schedule correctly, you must first
complete Side 2, Part II, line 1 through line 6.
Estates and trusts, do not use the period ending dates
shown to the right. Instead, use the following: 2/28/23,
4/30/23, 7/31/23, and 11/30/23.
Fiscal year filers must adjust dates accordingly.
1 Enter your California adjusted gross income (AGI)
for each period. Form 540NR filers, see instructions.
Estates or Trusts, enter the amount from Form 541,
line 20 attributable to each period. See instructions . . . .
2 Annualization amounts. Estates or Trusts,
see instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(a)
1/1/23 to 3/31/23

(b)
1/1/23 to 5/31/23

(c)
1/1/23 to 8/31/23

(d)
1/1/23 to 12/31/23

1
2

4

2.4

1.5

1

4

2.4

1.5

1

3 Annualized income. Multiply line 1 by line 2 . . . . . . . . . . 3
4 Enter your itemized deductions for the period shown in each
column. If you do not itemize deductions, enter -0- here and
on line 6. Estates or Trusts, enter -0- here, skip to line 9,
and enter the amount from line 3 on line 9 . . . . . . . . . . . 4
5 Annualization amounts. . . . . . . . . . . . . . . . . . . . . . . . . . . 5
6 Annualized itemized deductions. Multiply line 4 by line 5.
See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
7 Enter your standard deduction from your 2023 Form 540
or Form 540NR, line 18. Enter the total standard
deduction amount in each column. See instructions . . . . 7
8 Enter line 6 or line 7, whichever is larger . . . . . . . . . . . .

8

9 Subtract line 8 from line 3 . . . . . . . . . . . . . . . . . . . . . . . . 9
10 Figure the tax on the amount in each column of line 9 using
the tax table or the tax rate schedule in the instructions for
Form 540, Form 540NR, or Form 541. Also, include any tax
from form FTB 3803. Estates or Trusts, see instructions. . 10
11 Enter the total amount of exemption credits from your
2023 Form 540, line 32 or Form 541, line 22. If you filed
Form 540NR, see instructions . . . . . . . . . . . . . . . . . . . . . 11
12 Subtract line 11 from line 10. Form 540NR filers,
complete Worksheet I on page 3 of the instructions . . . . 12
13 Enter the total credit amount from your 2023 Form 540,
line 47; or Form 541, line 23. Form 540NR filers,
see instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

7673233

FTB 5805 2023 Side 3

Part III

Annualized Income Installment Method Schedule. continued
(a)
1/1/23 to 3/31/23

14 a
b

c
d
e

(b)
1/1/23 to 5/31/23

(c)
1/1/23 to 8/31/23

(d)
1/1/23 to 12/31/23

Subtract line 13 from line 12.
If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . .14a
Enter the alternative minimum tax and
mental health tax. See instructions. . . . . . . . . . . . . . .14b
Add line 14a and line 14b . . . . . . . . . . . . . . . . . . . . . 14c
Enter the excess SDI from Form 540, line 74
or Form 540NR, line 84 . . . . . . . . . . . . . . . . . . . . . .14d
Subtract line 14d from line 14c.
If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . .14e

15 Applicable percentage . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

27%

63%

63%

16 Multiply line 14e by line 15 . . . . . . . . . . . . . . . . . . . . . . . 16
Complete line 17 through line 23 of each column before you go to the next column.
17 Enter the combined amounts shown on line 23
from all preceding columns . . . . . . . . . . . . . . . . . . . . . . . 17
18 Subtract line 17 from line 16. If zero or less,
enter -0-. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
19 Enter 30% of the amount shown on form FTB 5805,
Part ll, line 6 in columns (a & d), enter 40% of the
amount on line 6 in column b, enter -0- in column c. . . . 19
20 Enter the amount from line 22 from
the preceding column . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
21 Add line 19 and line 20 . . . . . . . . . . . . . . . . . . . . . . . . . . 21
22 Subtract line 18 from line 21. If zero or less,
enter -0-. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
23 Enter line 18 or line 21, whichever is less, for each column. Transfer these amounts to Worksheet II, line 1, on page 4 of the instructions.
(a)
1/1/23 to 3/31/23

(b)
1/1/23 to 5/31/23

(c)
1/1/23 to 8/31/23

If you use the annualized income installment method for one payment due date, you must use it for all payment due dates.
This schedule automatically selects the smaller of your annualized income installment or your regular installment.

Side 4 FTB 5805 2023

7674233

(d)
1/1/23 to 12/31/23

90%