State removed my late penalty and refunded more than TurboTax calculated - what should I do?

[boysings]

I submitted my federal and state taxes with TurboTax.  The state refunded more than TurboTax had calculated, and I'm wondering what I need to do to my TT file.

TurboTax calculated a $138 late payment penalty because I hadn't paid enough taxes earlier in the year.  I got a notice from California:

We disallowed your direct deposit refund request because we changed your refund amount. (CODE: 15)

They didn't charge the penalty, so the check they sent included the $138.

Do I need to update my 2024 taxes in TurboTax to remove that refund so that it reflects what happened in 2024?  Do I "amend" my return but not submit it again?  Do I just edit it and save it?  I want it to be correct when I use it to create my 2025 taxes.

[BillM223]

Don't worry about your 2025 return. Late payment penalties normally don't carry over year to year, so your 2025 return won't care that you had a late payment penalty in 2024.

I would just make a happy note that you received and cashed the check and put it in your tax files. There is no need to worry about this for your 2025 return.

P.S., Think kindly of the employees in your state's taxing agency - they really are trying to do the right thing, just like at the IRS.

[boysings]

Thanks for your response.  I guess my concern is that the amount of my 2024 refund will be imported into the 2025 return, so I have to remember to correct it in 2025.  I'd rather correct it in 2024, if there's a way.

[BillM223]

No, your refund from 2024 is not carried over to 2025, it gets calculated anew for 2025.

Besides, TurboTax tends to carry over names (like your W-2), not numbers, which are sure to change every year.