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State tax filing
If you want to see if you can reduce or eliminate a tentative penalty that TurboTax has calculated based on what you have entered so far, you can do that in the Underpayment Penalty section. It's entirely possible that the additional information you entered actually served to increase the penalty, in which case you decided to let California calculate it instead, which is perfectly appropriate.
When you get a statement from California, you will have the opportunity to dispute their calculation of the penalty or provide more information if you disagree.
Please see the California Instructions for Form 5805 for more information about the way California calculates the penalty. TurboTax follows these instructions.
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‎April 12, 2025
3:48 PM