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Get your taxes done using TurboTax
There is a significant logic bug in the California state module regarding penalty calculations. The software bypassed the state interview entirely, jumping from 'Let’s do state' to 'Done with state' in one click. Despite this, it auto-generated a penalty on the summary sheet that I only discovered by switching to 'Forms View.'
Most importantly, simply running through the interview—without changing a single value or response—caused the penalty to vanish. This indicates that the software is defaulting to a penalty state in the background and failing to trigger the necessary 'Health Coverage' or 'Underpayment' validation logic until the interview is manually forced. Relying on the user to find an 'Edit' button is not a substitute for a functional step-by-step interview flow