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California Form 5805 (Underpayment Penalty) uses incorrect interest rates
The penalty is supposed to be calculated at 8% of the underpaid amount through 6/30/25, plus 7% of the underpaid amount from 7/1/25 onward. TurboTax reversed these numbers: it is actually computing the penalty using 7% though 6/30 and 8% afterward.
‎February 16, 2026
11:24 PM