topic Re: Unexpected State Refund in State tax filing

Unexpected State Refund

Steerpike58 — Thu, 29 May 2025 04:15:28 GMT

I used TT to file my taxes, as usual. I significantly under-withheld, and had a balance due of approx. $6,000 with my return. Turbo Tax calculated that I owed a penalty of $291, which was included in the amount due.

About 2 weeks after filing the return, I received a check from the State for $291, without any explanation - just a check.

Since the numbers match, I'd say this was obviously a refund of the penalty. But why did TT calculate that I owed a penalty when the State effectively rejected it?

Re: Unexpected State Refund

nettynoo — Thu, 29 May 2025 20:24:45 GMT

I had a similar issue and posted the same question basically. I owed $260+, paid it, then received a refund for the same amount with no explanation. There's no way I'm depositing it as I'm guessing it's a mistake.

Re: Unexpected State Refund

DoninGA — Thu, 29 May 2025 20:33:08 GMT

The state should be mailing you a letter in the next few weeks explaining why they refunded the amount that you received.

Re: Unexpected State Refund

Steerpike58 — Thu, 29 May 2025 22:05:00 GMT

I've received 'corrections' to my tax submissions before, but in the past, they've always been accompanied by an explanatory letter.

Re: Unexpected State Refund

Steerpike58 — Thu, 29 May 2025 22:08:47 GMT

@nettynoo wrote:
I had a similar issue and posted the same question basically. I owed $260+, paid it, then received a refund for the same amount with no explanation. There's no way I'm depositing it as I'm guessing it's a mistake.

What's the worst that can happen? You get a letter in the future saying 'oopsie, we made a mistake' and you have to write a check back to them. Even if you don't deposit it, I suspect if they made a mistake they'll ask you to write them a check (they would assume you've deposited it already). Anyway, make sure there's no expiration date on the check; if you wait 6 months and don't hear from them, the check might expire!

Re: Unexpected State Refund

baldietax — Fri, 30 May 2025 16:19:25 GMT

@nettynoo which state is this.. check state website if any sort of penalty waiver/abatements in effect e.g. disaster relief in NC.

if they recalculate your underpayment penalty independently like Fed does but have different information for 2023 tax info or estimated payments, they may get a different result than TT calculation. you should have a form in your state return with the penalty calculation you can go thru and see if there might be anything that state knows differently

Re: Unexpected State Refund

nettynoo — Sun, 01 Jun 2025 20:27:39 GMT

This is CA. There was no info with the return. It's just weird that the amount back was the exact same amount that they said I owed.

Re: Unexpected State Refund

baldietax — Sun, 01 Jun 2025 23:29:52 GMT

don't know much about CA tax but is it this one-time abatement?

https://www.ftb.ca.gov/pay/penalties-and-interest/one-time-penalty-abatement.html