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Instructions for Worksheet II –

‘‘Yes’’ for any question on form FTB 5805,

Example: You had an underpayment for the

Side 1, Part I, you must file form FTB 5805 with

April 15th installment of $500. The June 15th

Regular Method to Figure Your

your return.

installment required a payment of $1,200. On

June 10th, you sent in a payment of $1,200 to

Underpayment and Penalty

Part II — Figure the Penalty

cover the June 15th installment. However, $500

Figure the penalty by applying the appropriate

of this payment is considered to be for the April

Part I — Figure Your Underpayment

rate against each underpayment shown on line 8.

15th installment. The penalty for the April 15th

Line 1 – Enter in column (a) through column (d)

The penalty is figured for the number of days

installment is figured to June 10th. The amount

the amount of your required installment. For most

that the underpayment remained unpaid.

of the payment to be applied to the June 15th

taxpayers this is the amount shown on form

installment is $700.

The rates are established at various times

FTB 5805, Side 1, Part II, line 6 divided by 4. If

throughout the year. If an underpayment

Subsequent Payments. For purposes of com-

you use the annualized income installment

remained unpaid for more than one rate period,

puting the penalty, it may be helpful to make a

method, enter the amount from form FTB 5805,

the penalty on that underpayment will be figured

list of any payments that you made after the

Side 2, Part III, line 23.

using more than one rate period.

timely payments entered in Part I, line 2. If you

Line 2 – Enter the estimate payments made by

made no other payments, follow the line-by-line

Use line 10 and line 12 to figure the number of

the date at the top of each column.

instructions for Part II.

days the underpayment remained unpaid. Use

Include any overpayment of tax from your 1997

line 11 and line 13 to figure the actual penalty

If you made subsequent payments, you may

return that you elected to apply to the 1998 esti-

amount by applying the rate against the under-

need to make additional computations for the

mated tax. Enter this amount in column (a).

payment for the number of days it remained

applicable column on the worksheet. However, if

Divide by 4 the amount you entered on form FTB

unpaid.

the payment reduced the underpayment to zero,

5805, Part II, line 3, and enter the result in each

there are no further computations to make for

Maximum days in a rate period per quarter:

column, unless you can show it was withheld oth-

that column. In that case, you count the number

erwise.

of days from the installment due date to the date

Installment

Days in Rate

paid.

Note: If your California withholding was not with-

Period 1

Period 2

held in equal installments, and you are able to

If a subsequent payment does not reduce the

show the actual amounts withheld per period and

260

105

underpayment to zero, you will need to make an

the dates withheld, you must answer ‘‘Yes’’ to

additional computation in the column. First, count

199

105

Part I, Question 3 and enter the uneven amounts

the number of days from the due date to the date

107

105

withheld on the lines provided on Part I,

paid and use the underpayment amount from

Question 3.

Worksheet II, line 8. Second, count the number

of days from the payment date to the end of the

If you file your return and pay the tax due by

Payment Application. Your payments are

rate period, and subtract the amount of the sub-

February 1, 1999, enter the amount of tax paid

applied to any underpayment balance on an ear-

sequent payment from the underpayment amount

with your return in column (d). In this case, you

lier installment. It does not matter if you

from Worksheet II, line 8. Then apply the rate for

will not owe a penalty for the estimate payment

designate a payment for a later period.

the applicable period.

due by January 15, 1999.

Line 8 – If line 8 is zero for all payment periods,

you do not owe a penalty. But if you checked

FTB 5805 Instructions 1998

Page 3

Instructions For Form Ftb 5805 - Underpayment Of Estimated Tax By Individuals And Fiduciaries - 1998 Page 3

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