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Changes to 2009 Forms

Updates to the Form 5805 Instructions on 04/06/2010—Instructions for 5805 Form, Underpayment of Estimated Tax by Individuals and Fiduciaries

We replaced text on the Form 5805 Instructions on page 3, line 10, Instructions on how to figure the tax for 541 filers.

Previous Version

Line 10 — Form 541 filers
Figure the tax on the amount in each column of line 9 using the tax rate schedule in your tax booklet.

Revised Version

Line 10 — Form 541 filers
Figure the tax on the amount in each column of line 9 using the tax rate schedule (Schedule X) on page 5.

Reason for the changes

Original instruction directed taxpayers to the tax rate schedule in the 541 tax booklet which is the wrong amount for the 2009 underpayment penalty. The tax rate schedule X in the 5805 instructions does not reflect the tax increase of 0.25%. Therefore, it is the correct tax rate schedule for the 541 filer to determine the penalty.

Impact

It will help the taxpayers figure the correct underpayment penalty without the increase in tax rates during 2009.


Updates to the Form 5805 Instructions on 01/12/2010—Instructions for 5805 Form, Underpayment of Estimated Tax by Individuals and Fiduciaries

We replaced text on the Form 5805 Instructions on:

  • Page 5, line 9 Alternative Minimum Tax
  • Page 6, line c Exemptions Credits Limitations Worksheet

Previous Version

  1. Alternative Minimum Tax

    Form 540 filers, multiply the amount on Sch P, line 24 by .9655, less line 2, above. Form 540NR filers, recompute your Sch P, multiply line 24 by .9655. Subtract line 43 of your recomputed Sch P from line 4c, above. Form 541 filers, multiply the amount on Sch P, line 8 by .9655, less line 3a, above. If less than zero, enter zero.

  2. Exemptions Credits Limitations Worksheet

    Subtract line b from line a.

Revised Version

  1. Alternative Minimum Tax

    Form 540 filers, multiply the amount on Sch P, line 24 by .9655, less line 2, above. Form 540NR filers, recompute your Sch P, multiply line 24 by .9655. Subtract line 4c, above, from line 43 of your recomputed Sch P. Form 541 filers, multiply the amount on Sch P, line 8 by .9655, less line 3a, above. If less than zero, enter zero.

  2. Exemptions Credits Limitations Worksheet

    Subtract line b from line a, if zero or less your credits are not limited. Enter your total credits on line 5 of the worksheet.

Reason for the changes

To correct the math formula for the alternative minimum tax and clarify the exemptions credits worksheet.

Impact

It will help the taxpayers figure the correct underpayment penalty.

Back to Tax Form Changes for 2009