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Changes to 2007 Form

Update to 2007 5805 Instructions, Underpayment of Estimated Tax by Individuals and Fiduciaries

The revised Internet version is available for download as of 05/16/2008.

Revision Details: Excess SDI should be included in the “Tax after credits” figure to which the 90% required annual payment amount.

  • This update is located on FTB 5805, Side 2, line 14d, line14e, and line 16, side 2, line 13, page 2, column 1, line 1 instructions, page 2, column 2, line 3 instructions, page 2, column 2, line 5 instructions, and pages 671 and 673 of the Package X.

Previously read:
1. d Enter the child and dependent care expenses credit amount from Form 540, line 43; Form 540A, line 43; or Long Form 540NR, line 50
e Subtract line 14d from line 14c. If zero or less, enter -0-
15 Applicable percentage
16 Multiply line 14e by line 15

2. 13 Enter the total credit amount from your 2007 Form 540, line 29; Form 540A, line 29; or Form 541, line 24. Long Form 540NR filers, see instructions

3. Line 1 – Enter your tax liability (excluding any tax on lump-sum distributions) from your 2007 Form 540, line 30, line 31, and line 32 less the amount on line 43; Form 540A, line 30 and line 32 less the amount on line 43; Long Form 540NR, line 38, line 39, and line 40 less the amount on line 50; or Form 541, line 25, line 26, and line 27.

4. Line 3 – Enter the amounts from your 2007 Form 540, line 36, line 38, and line 39; Form 540A, line 36 and line 39; Long Form 540NR, line 43, line 44, and line 46; or Form 541, line 29 and line 31.

5. Line 5 – Enter your tax liability (excluding any tax on lump-sum distributions) from your 2006 Form 540, add line 30, line 31 and line 32, less line 43. Long Form 540NR, add line 38, line 39 and line 40, less line 50; or Form 541, line 28.


Revised to:

1. d Enter the excess SDI from Form 540, line 39; Form 540A, line 39; or Long Form 540NR, line 46.
e Enter the child and dependent care expenses credit amount from Form 540, line 43; Form 540A, line 43; or Long From 540NR, line 50
f Subtract line 14d and line 14e from line 14c. If zero or less, enter -0-
15 Applicable percentage
16 Multiply line 14e f by line 15

2. 13 Enter the total credit amount from your 2007 Form 540, line 29; Form 540A, line 28; or Form 541, line 23 Long Form 540NR filers, see instructions

3. Line 1 – Enter your tax liability (excluding any tax on lump-sum distributions) from your 2007 Form 540, line 30, line 31, and line 32 less the amount on line 39 and line 43; Form 540A, line 30 and line 32 less the amount on line 39 and line 43; Long Form 540NR, line 38, line 39, and line 40 less the amount on line 46 and line 50; or Form 541, line 25, line 26, and line 27.

4. Line 3 – Enter the amounts from your 2007 Form 540, line 36 and line 38; Form 540A, line 36; Long Form 540NR, line 43 and line 44; or Form 541, line 29 and line 31.

5. Line 5 – Enter your tax liability (excluding any tax on lump-sum distributions) from your 2006 Form 540, add line 30, line 31 and line 32, less line 39 and line 43; Form 540A add line 21 and line line 22, less the amount on line 27 and line 31; or Long Form 540NR, add line 38, line 39 and line 40, less line 46 and line 50; or Form 541, line 28.

The current year calculation may create a minor difference in the penalty amount. However, the FTB systems will correct any incorrect penalty. As for the prior year calculation it makes no mathematical difference, since the applicable percentage is still always 100% for California.


Update to 2007 5805 Instructions, Underpayment of Estimated Tax by Individuals and Fiduciaries

The revised Internet version is available for download as of 03/17/2008.

Revision Details: To instruct the taxpayer to use federal Schedule A line 13, line 19, and line 27, when the taxpayer should use federal Schedule A line 14, line 20, and line 28. This change would have a minimal impact to tax liability.

  • This update is located on page 2 of the FTB 5805 instructions, column 3, line 6, worksheet line 2. Also on page 673 of the package X.

Previously read:

2 Using California amounts, add the amounts on federal Schedule A, line 4, line 13, and line 19 plus any gambling losses included on line 27.

Revised to:

2 Using California amounts, add the amounts on federal Schedule A, line 4, line 14, and line 20 plus any gambling losses included on line 28.


Revision Date: 01/25/2008

Revision Details: Taxpayers were requested to use an amount from an incorrect line number (prior year's overpayment) from the prior year return resulting in an incorrect calculation of the underpayment penalty. The change directs taxpayers to use an amount from the Child and Dependent Care Credit line that will result in a correct computation of the underpayment penalty.

  • Page 2, part 2, column 2, line 5 instructions and page 673 of the Package X

It should read:

Line 5 - Enter your tax liability (excluding any tax on lump-sum distributions) from your 2006 Form 540, add line 30, line 31 and line 32, less line 43. Long Form 540NR, add line 38, line 39 and line 40, less line 50; or Form 541, line 28.

Taxpayers using the previous instructions will calculate an incorrect underpayment penalty.

The revised Internet version is available for download.

Back to Tax Form Changes for 2007