CA Form 3805P - Additional Taxes on Qualified Plans and Other Tax-Favored Accounts
Form FTB 3805P is used by California taxpayers to report additional taxes on distributions from qualified retirement plans, including IRAs, and other tax-favored accounts. This form is required when a taxpayer receives distributions that are subject to California-specific additional taxes, such as early withdrawal penalties or taxes on non-qualified distributions from education savings accounts.
Who Must File Form 3805P?
- Taxpayers who received distributions from qualified retirement plans (e.g., IRAs, 401(k)s) and are subject to California’s additional tax.
- Individuals who received taxable distributions from Coverdell Education Savings Accounts (ESAs), Qualified Tuition Programs (QTPs), or ABLE accounts.
- Those who are not required to file Form 540 or Form 540NR but must file Form 3805P due to specific tax obligations.
Key Sections of Form 3805P
- Part I: Additional Tax on Early Distributions – Calculates the 24% additional tax on early distributions from qualified plans. For SIMPLE IRA distributions, a 6% tax may apply instead.
- Part II: Additional Tax on Education Accounts and ABLE Accounts – Applies to distributions from Coverdell ESAs, QTPs, and ABLE accounts. Taxpayers must reference Schedule CA (540) or Schedule CA (540NR) for amounts included in income.
- Line 11: Medicare Advantage MSA Distributions – Reports additional tax due from Medicare Advantage MSA distributions, referencing federal Form 8853, line 13b.
Filing Instructions
- Complete Form 3805P separately for each spouse if filing jointly and both have taxable distributions.
- If filing Form 3805P separately from Form 540 or Form 540NR, sign the form and file by the due date for the tax return.
- For prior-year tax payments, use the version of Form FTB 3805P corresponding to the taxable year.
How to Add Form 3805P in OLT Software
Using Online Taxes (OLT) software, taxpayers can add Form 3805P by navigating to the State section, selecting California, and choosing to start or edit Form 3805P under the Taxes section. Follow on-screen instructions for guidance.
Important Notes
- The instructions for Form FTB 3805P are summaries of California tax law and not authoritative legal references.
- Taxpayers should refer to federal forms such as Form 8606 and Form 5329 for additional guidance on non-qualified distributions and education accounts.
- For ABLE account distributions, refer to federal Form 5329 for more information.
Source:
Form FTB 3805P Instructions
Disclaimer: Always verify details with official Federal or State Department of Revenue Forms and Instructions.