I owe more than I paid with 4868 extension. I used IRS calculator to get amount of penalty and interest. How can I pay them with my final tax return e-filing? I know that TurboTax calculated penalty, however it is different from IRS calculator amount; I don't see a way to enter interest at all.
What is generally recommended is that you don't try to calculate any additional interest or penalty. Just go ahead and file your return as you have prepared it. The IRS will calculate any interest or additional penalty and notify you of additional payment due.
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There is no way for you or Turbo Tax to calculate any interest. It is determined by exactly when the IRS get your tax due payment. Just let the IRS bill you for any more.
Thank you for your reply, I think I have to wait for another bill from IRS. I also assume that the answer to my actual question is: "TurboTax does not support entering correct penalty and interest even when I know the exact numbers". Both numbers are not very difficult to get from IRS calculator.
This is disappointing. By the time IRS will bill me, additional fees will likely accumulate. It further means that TurboTax makes it impossible to file extended tax report at once -- I need to wait for additional bill from IRS and make another payment before I can declare taxes completed.
Actually, you need to go ahead and file your tax return as it has been calculated by TurboTax. Don't wait any longer. After you've filed and your return has been accepted, the IRS will calculate any additional penalty and interest and will bill you.
@AD2019 wrote:
Thank you for your reply, I think I have to wait for another bill from IRS. I also assume that the answer to my actual question is: "TurboTax does not support entering correct penalty and interest even when I know the exact numbers". Both numbers are not very difficult to get from IRS calculator.
This is disappointing. By the time IRS will bill me, additional fees will likely accumulate. It further means that TurboTax makes it impossible to file extended tax report at once -- I need to wait for additional bill from IRS and make another payment before I can declare taxes completed.
If you are late and interest and penalties apply then ONLY the IRS can calculate that since it depends on the actual day that the IRS receives and processes your payment. ONLY the IRS can know that. Interest and late charges can NEVER be paid in advance - only the IRS can bill you for those.
You post doesn't make sense. You don't wait for anything. You need to pay the tax due as soon as soon as possible. You actually need to make an estimated payment when you file the extension by April 15. The IRS doesn't bill you and won't bill you for the interest until they get your return and tax due payment. The interest stops accumulating as soon as the IRS gets your tax due payment. Then they calculate the extra interest if any and bill you.
And even if you or Turbo Tax adds it on line 23 it is only an estimate. It's common and expected for the IRS to bill you for more depending on when they actually get your payment. Or even send you a refund for some.
Ok ... Turbotax ONLY calculates an ESTIMATED underpayment penalty and once you have filed the Feds/State will bill you for any unpaid taxes from the return PLUS any additional underpayment penalty PLUS any failure to pay penalty PLUS interest on same. The faster you pay the balance due the less penalty and interest will be charged.