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2016 Instructions for Form FTB 5805

Underpayment of Estimated Tax by Individuals and Fiduciaries

General Information

To request a waiver do all of the following:

California law is compatible with the

Servicemembers Civil Relief Act (Public

• Check “Yes” on form FTB 5805, Part I,

Law 108‑189). This means that servicemembers

Estimated Tax Payments – Taxpayers are

Question 1, and in the space provided, explain

domiciled outside of California, and their

required to pay 30% of the required annual

why you are requesting a waiver of the

spouses/RDPs, may exclude the servicemember’s

payment for the first required installment, 40%

estimate penalty. If you need additional space,

military pay from gross income when computing

of the required annual payment for the second

attach a statement. Be sure to include your

the tax rate on nonmilitary income.

required installment, no installment is due for

name and tax ID number to any statement you

the third required installment, and 30% of the

attach.

G Farmers and Fishermen

required annual payment for the fourth required

• Complete form FTB 5805 through Part II,

You are considered a farmer or fisherman if

installment. For more information get the

line 12 (Worksheet II, line 13 if you use

at least two‑thirds (2/3) of your annual gross

instructions for Form 540‑ES, Estimated Tax for

the regular method) without regard to the

income for 2015 or 2016 is from farming or

Individuals, or Form 541‑ES, Estimated Tax for

waiver. Enter the amount you want waived in

fishing. Farmers and fishermen are required to

Fiduciaries.

parentheses on the dotted line next to Part II,

make one estimate payment. For calendar year

line 13 (Worksheet II, line 14 if you use the

You must make estimated tax payments if you

taxpayers, the due date is January 15, 2017.

regular method). Subtract this amount from

expect to owe at least $500 ($250 if married/RDP

If you file Form 540, Long Form 540NR,

the total penalty you figured without regard

filing separately) in tax for 2016. If in the prior

or Form 541 and pay the entire tax due by

to the waiver, and enter the result on Part II,

year your tax liability, less any credits for the prior

March 1, 2017, you do not owe a penalty for

line 13 (Worksheet II, line 14 if you use the

year, was less than $500 ($250 for married/RDP

underpaying estimated tax. Use form FTB 5805F,

regular method).

filing separately) you are not subject to the

Underpayment of Estimated Tax by Farmers and

• Check the box on Form 540, line 113;

underpayment of estimated tax penalty.

Fishermen.

Long Form 540NR, line 123; or Form 541,

Taxpayers with California adjusted gross income

H Due Dates for Estimated Tax

line 44.

(AGI) equal to or greater than $1,000,000 (or

• Attach form FTB 5805 to the back of your

$500,000 if married/RDP filing separately), must

Installments

tax return.

use the tax on their 2016 tax return to figure their

If you are a calendar year taxpayer, the estimated

D Annualized Income

penalty if they are subject to the underpayment of

tax installment due dates for 2016 were:

estimated tax penalty.

Installment Method

• First payment

—

April 15, 2016

The Mental Health Services Act, imposes an

• Second payment —

June 15, 2016

If your income varied during the year and you

additional 1% tax on taxable income over

• Third payment

—

September 15, 2016

use the annualized income installment method to

$1,000,000 and is included in the calculation of

• Fourth payment —

January 15, 2017

determine your estimate payment requirements,

the estimated tax.

you must complete form FTB 5805, including

Fiscal year filers must pay estimated tax

Alternative Minimum Tax (AMT) is included in the

Side 3. Attach it to the back of your tax return.

installments on the 15th day of the 4th, 6th,

calculation of estimated tax.

Also check the box on Form 540, line 113;

and 9th months of their fiscal year, and the 1st

The underpayment of estimated tax penalty

Long Form 540NR, line 123; or Form 541, line 44

month of the following fiscal year.

shall not apply to the extent the underpayment

for the underpayment of estimated tax.

The penalty is figured separately for each due

of an installment was created or increased

E Estates and Trusts

date. Therefore, you may owe a penalty for an

by any provision of law that is chaptered

earlier installment due date, even if you pay

Estates and grantor trusts, which receive the

during and operative for the taxable year of

enough tax later to make up the underpayment.

residue of the decedent’s estate, are required to

the underpayment. To request a waiver of

make estimated income tax payments for any

When the estimate due date falls on a weekend

underpayment of estimated penalty, follow the

year ending two or more years after the date

or holiday, the deadline to file and pay without

directions under General Information C.

of the decedent’s death. If you answer “Yes” to

penalty is extended to the next business day.

A Purpose

Question 4, complete Part I only and attach form

Filing an Early Return in

Use form FTB 5805, Underpayment of Estimated

FTB 5805 to the back of your tax return.

Place of the 4th Installment

Tax by Individuals and Fiduciaries, to see if you

Exempt trusts should use form FTB 5806,

owe a penalty for underpaying your estimated tax

Underpayment of Estimated Tax by Corporations.

If you file your 2016 tax return before

and, if you do, to figure the amount of the penalty.

February 1, 2017, and pay the entire balance

F Nonresidents and New

B Who Must File

due, you do not have to make your last estimate

Residents

payment. Fiscal year filers must file their tax

Generally, you do not have to complete this

return and pay their tax before the first day of

The penalty for the underpayment of estimated

form. If you owe a penalty, the Franchise Tax

the 2nd month after the end of their taxable year.

tax applies to nonresidents and new residents.

Board (FTB) figures the penalty for you and sends

See the conditions listed in the box labeled

you a bill after you have filed your tax return. You

J Amended Tax Return

“Important” on Side 1 of form FTB 5805.

must pay the penalty within 15 days of the billing

If you file an amended tax return:

to avoid additional interest charges.

In 2001, California changed the method used to

• On or before the due date of your original

calculate loss carryovers, deferred deductions,

Important: If you answer “Yes” to any of the

return, use the tax, credit, and other amounts

and deferred income for nonresident and part‑

questions in Part I (estates and trusts, see

shown on your amended tax return to figure

year resident taxpayers (AB 1115, Stats 2001,

General Information E), complete this form and

your penalty for underpayment of estimated

Ch. 920). This law changed the tax computation

attach it to the back of your tax return.

tax.

to recognize those items, and established a

C Waiver of the Penalty

• After the due date of the original tax return,

new method of determining percentages for

you must use the amounts shown on the

You may request a waiver of the penalty if either

computing tax for all nonresidents and part‑year

original tax return to figure the penalty.

one of the following apply:

residents. California changed the nonresident tax

forms (Long and Short Form 540NR) to more

• You underpaid an estimated tax installment

clearly show that nonresidents are taxed by

due to a casualty, disaster, or other unusual

California only on their California taxable income.

circumstance and it would be inequitable to

For more information get FTB Pub. 1100, Taxation

impose the penalty.

of Nonresidents and Individuals Who Change

• You retired after age 62 or became disabled

Residency.

in 2015 or 2016 and your underpayment was

due to reasonable cause.

FTB 5805 Instructions 2016 Page 1

Instructions For Form Ftb 5805 - Underpayment Of Estimated Tax By Individuals And Fiduciaries - 2016

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