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Part III Annualized Income Installment Method Schedule.

Use this schedule ONLY IF you earned taxable income at an UNEVEN RATE during 2001 (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 the instructions for

Worksheet II — Regular Method to Figure Your Underpayment and Penalty, on page 3 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 equal 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.

Note: To complete this schedule correctly, you must first complete Side 1, Part II,

line 1 through line 6.

Estates and trusts, do not use the period ending dates shown to the right.

(a)

(b)

(c)

(d)

Instead, use the following: 2/28/01, 4/30/01, 7/31/01, and 11/30/01. Fiscal-year

1/1/01 to

filers must adjust dates accordingly.

3/31/01

5/31/01

8/31/01

12/31/01

Enter your adjusted gross income (AGI) for each period. Long Form 540NR filers,

see instructions. Estates or trusts, enter the amount from Form 541, line 20

attributable to each period. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Annualization amounts. Estates or trusts, see instructions . . . . . . . . . . . . . . . . . . . .

2.4

1.5

Annualized income. Multiply line 1 by line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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 . . . . . . . . .

Annualization amounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2.4

1.5

Annualized itemized deductions. Multiply line 4 by line 5. See instructions . . . . . . . .

Enter your standard deduction from your 2001 Form 540 or Long Form 540NR,

line 18; or Form 540A, line 15. Enter the total standard deduction amount

in each column. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Enter line 6 or line 7, whichever is larger . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Subtract line 8 from line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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 540A, Long Form 540NR, or Form 541.

Also, include any tax from form FTB 3803. Estates or trusts, see instructions . . . . . . . .

Enter the total amount of exemption credits from your 2001 Form 540, line 21;

Form 540A, line 18; Long Form 540NR, line 23; or Form 541, line 22. Enter the total

exemption credit amount in each column. See instructions . . . . . . . . . . . . . . . . . . . .

Subtract line 11 from line 10. Long Form 540NR filers, complete Worksheet I on

page 2 of the instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Enter the total credit amount from your 2001 Form 540, line 33 plus line 45,

Form 540A, line 19 plus line 31, or Form 541, line 23. Long Form 540NR filers,

see instructions. Enter the total amount of credits in each column . . . . . . . . . . . . . .

Subtract line 13 from line 12. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . .

Applicable percentage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

20%

40%

60%

80%

Multiply line 14 by line 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1 2 3 4 5 6 7 8 9 0 1

COMPLETE LINE 17 THROUGH LINE 23 OF EACH COLUMN BEFORE YOU TO GO TO

1 2 3 4 5 6 7 8 9 0 1

THE NEXT COLUMN.

1 2 3 4 5 6 7 8 9 0 1

Enter the combined amounts shown on line 23 from all preceding columns . . . . . . .

1 2 3 4 5 6 7 8 9 0 1

Subtract line 17 from line 16. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . .

In each column, enter 1/4 of the amount on form FTB 5805, Part II, line 6 . . . . . . .

1 2 3 4 5 6 7 8 9 0 1

Enter the amount from line 22 from the preceding column . . . . . . . . . . . . . . . . . . . .

1 2 3 4 5 6 7 8 9 0 1

Add line 19 and line 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Subtract line 18 from line 21. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . .

Enter line 18 or line 21, whichever is less. Transfer these amounts to

Worksheet II — Regular Method to Figure Your Underpayment and

Penalty, line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Note: 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 2 FTB 5805 2001

580501204

Californiaform 5805 - Underpayment Of Estimated Tax By Individuals And Fiduciaries - 2001 Page 2

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