I received "Notice of Proposed Assessment" letter from State of Calif, researched and paid it. Do I need to change last year taxable income for this reporting year?

[BarbaraW22]

Yes, I would recommend that you prepare an amended return. It is always a good idea to confirm that the proposed assessment is correct. The state (and federal) tax authorities do not always have all the facts and circumstances regarding your situation. There is no cost to create an amended return if you used TurboTax to prepare your original return.

In addition, depending on the circumstances, your federal return may also need to be amended.