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Level 2

Solved

$2 penalty/fee

Forum|Forum|6 years ago
March 30, 2020
1 reply
11 views

There is a $2.00 Penalty/Interest charge on our federal return (shown on the turbotax summary page). The amount we owe is less than last year, when there was no charge. I tried changing my withholdings to even things up, but to little effect. Last year $1698 was owed, and this year, $1289.

Can you tell me what the $2 is about?

Thank you,

Jerry

Best answer by Critter

Save a PDF with all the worksheets to see form 2210 calculation but if you owe more than $1000 then a penalty can be applied. If you qualify for an exception then you can avoid the penalty ... the program uses the most common one automatically ... the most common is to pay in 100% of last year's tax liability so if you look at the 2017 tax liability and the 2018 taxes paid you will most likely see that the 2018 amount is at least the 2017 amount but the same cannot be said for the 2018/2019 situation ... but a $2 penalty is almost nothing.

See the rules here :

https://www.irs.gov/pub/irs-pdf/i2210.pdf

Level 15

Save a PDF with all the worksheets to see form 2210 calculation but if you owe more than $1000 then a penalty can be applied. If you qualify for an exception then you can avoid the penalty ... the program uses the most common one automatically ... the most common is to pay in 100% of last year's tax liability so if you look at the 2017 tax liability and the 2018 taxes paid you will most likely see that the 2018 amount is at least the 2017 amount but the same cannot be said for the 2018/2019 situation ... but a $2 penalty is almost nothing.

See the rules here :

https://www.irs.gov/pub/irs-pdf/i2210.pdf

Jerrygray36Author

Level 2

Thank you. It is almost nothing, but 1: I "have to" know the why of everything, and 2: It just bugged me! Ha ha. I appreciate your assistance.

Regards,

Jerry