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Level 2
posted Mar 2, 2025 1:27:56 PM

Is there a way to override an under payment penalty for Virginia. I have confirmed that the penalty is an error with a CPA.

TurboTax is trying to assess me a $400 underpayment penalty for Virginia taxes. I have gone over this multiple times with a CPA who I know who has confirmed that I paid 90.3% of my owed taxes. He feels there is a glitch in the TurboTax algorithm. Is there any way to override the penalty?

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1 Replies
Expert Alumni
Mar 5, 2025 12:25:19 PM

If you are using TurboTax Online and are unable to remove the penalty you can file your Virginia (VA) return by mail and pay only the tax balance due without the penalty. 

 

Please do the following and then review once more to be sure. This will remove bits of debris data.

 

Clearing cache and cookies will handle many issues that seem nonsensical on a regular basis with online activity. 

  • Close your TurboTax return first.

Watch to be sure you are selecting 'all time' as example.  Do not use selections like 'last hour' for those browsers that give  you options.

Once this is complete open your return and try again.

 

If you are using TurboTax Desktop, save your return, then at the top select Online, then Check for updates.

 

If you would like to send us a “diagnostic” file that has your “numbers” but not your personal information it would help.  If you would like to do this, here are the instructions:  (Don't forget to give us the state)

 

TurboTax Online:

Open your return -Go to the menu panel on the left side of your return and select Tax Tools. 

  1. Then select Tools below Tax Tools. 
  2. A window will pop up which says Tools Center.  
  3. On this screen, select Share my file with Agent. 
  4. You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number. 
  5. Reply to this thread with your Token number and your state. This will allow us to open a copy of your return without seeing any personal information.  

TurboTax Desktop:

If you like, you can send a copy of your return that will be scrubbed to eliminate your personal data by using these steps:

  1. Click on Online in the top left menu of TurboTax CD/Download for Windows
  2. Select 'Send Tax File to Agent'
  3. Write down or send an image of your token number and state then place in this issue.
  4. We can then review your exact scenario for a solution.
  5. Please also tell us any states included in the return. This is necessary for us to view the return.

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.