Turbo Tax adding penalty a second time while filing amendment

ksach — Tue, 14 Apr 2026 06:37:07 GMT

I file my taxes yesterday and because I had underpaid, I had to pay a penalty of about $600 bucks. Since I am getting a refund, I asked that the money be held back from my refund.

Today I found that the import from Charles Shwab was incorrect and missed a dividend (a small one). I wonder why the import does not import all of it, but thats a topic for another day.

Now I am trying to file the amendment because I owe $9 for the California tax. When Turbox tax calculates what I newly owe in 540 Schedule X, it miscalculates the amount owed because the refund it had calculated in my original 540 was deducting the $600 penalty I owed. So, it now saw I owe $609 instead of the $9 i really owe.

If I fix the refund amount manually in the forms include the penalty as well, the smart check fails because the amount does not match the amount on line 115 of Form 540. It seems like a bug with Turbo Tax.

I dont want to get an audit because I owe 9 bucks more, but I dont want to pay the 600 bucks penalty twice.

What can I do?

Re: Turbo Tax adding penalty a second time while filing amendment

AmyC — Tue, 14 Apr 2026 18:04:09 GMT

You can't file an amended return until the original has finished processing but you can go ahead and pay the $9 you owe now. This will stop any penalties and interest.

Once your original has processed and your refund is received, you can file the return.

We need to correct your amended:

Open Schedule X amended in Forms mode
Line 2 overpaid tax - your refund without the penalty
Line 5 tax paid $600
Line 7 should be the $9 you want to show
Line 8a $600
Form 5805 Underpayment of estimated tax is not part of the amended return. Remove the penalty calculation.

FYI: $9 is below the threshold for accuracy related penalties.

Pay online at FTB Web Pay portal

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Turbo Tax adding penalty a second time while filing amendment

Re: Turbo Tax adding penalty a second time while filing amendment