I received a bill from the IRS for $709.98 for failure to pay a penalty because I did not make any estimated tax payments during 2018. TurboTax has a "100% accurate calculations guarantee." How do I file a claim against TurboTax for breach of this guarantee?
What is it you're saying the program did wrong?
If the $709.98 was for the penalty, that's how it works. The penalty accumulation stops on the day the IRS receives your tax payment - which is rarely the date you file your tax return. The IRS gets what you owe, penalty accumulation stops and the IRS sends you a separate bill for the penalty amount owed.
Take a look at your 1040 line 23. The amount there is just an estimate. Note that the line is titled "estimated" tax penalty, because that amount is based on the date you prepared the return - not the date you filed it or the date the IRS received it.
Now if the bill includes additional tax and that $709.98 is more than just a late payment or under payment penalty, more than likely the IRS is aware of income you failed to report on your tax return for whatever reason. In that case, that's not a program fault or error. The program can only work with the data you enter into it, and that's it.
What form letter did the IRS send you? It's at the top and starts with "CP" or "LTR". Depending on the specific letter sent, it will tell you why you owe the additional money. Some of those form letters can be rather cryptic. So if you'll share the form number, we can help you understand it if necessary.
Your comment is not understood. My 1040 line 23 is blank. The IRS letter (Form CP) specifically states "Failure to pay proper estimated tax penalty." TT asked me for 2018 tax payments and I answered zero. That should have been sufficient to trigger a TT calculation of the penalty for failure to pay the "proper estimated tax."
Based on your above, TurboTax did in fact, calculate your taxes correctly. The penalty is based on your non-payment or underpayment of estimated taxes, and it doesn't matter "WHEN" the penalty was calculated or assessed - it's still the same amount provided of course, you actually pay the penalty within the time frame specified in the letter you received, if a deadline is specified. If (and only if) TTX calculated a penalty, it would have been an estimate and it would have been less than the final penalty calculated by the taxing authority upon receiving your payment. So weather you pay say, $600 at tax filing time and get a bill later for the remaining $109.98 later, or if you get a bill for the entire 709.98 later does not change the fact you're paying a penalty of $709.98.
Basically, and based solely on the information provided in this thread, you don't have a claim. But if you want you can follow TaxPro+40's link below to file a claim. But again, based solely on the facts provided in this thread, I'm sure it's going to be denied.
you may not have much of a case. in 2017 TT would have calculated estimated taxes for 2018 as needed. it would be your responsibility to monitor your withholding in 2018 to make sure it did not drop and that any estimated tax payments calculated by TT were paid timely. .
but go ahead you got nothing to loose
On the 17th I filled my 2017 taxes. After I finished it said that I filled my 2019 taxes. This needs to be handled immediately!
@Cynthiannburks wrote:
On the 17th I filled my 2017 taxes. After I finished it said that I filled my 2019 taxes. This needs to be handled immediately!
The TurboTax online editions are only for tax year 2019.
Why in the world would you enter 2017 tax data on a 2019 tax return? The entire process for entering tax data refers to tax year 2019,
NOT
2017. You messed up.The IRS will probably reject your tax return after they start receiving 2019 tax return on January 27. Then you can delete all of your entries and file a 2019 tax return with your 2019 tax data.
To complete and file a 2017 tax return using TurboTax you would need to purchase, download and install on a personal computer, Win or Mac, one of the 2017 desktop editions from this website - https://turbotax.intuit.com/personal-taxes/past-years-products/2017
A 2017 tax return can only be printed and mailed, it cannot be e-filed.
when you find out please lieve details because there stealing information and using it for there selves
I was charged $90 for the free edition of TurboTax you're not supposed to charge anyone that makes under $35,000 a year I want my money back
@DouglasRayGross wrote:
I was charged $90 for the free edition of TurboTax you're not supposed to charge anyone that makes under $35,000 a year I want my money back
See this TurboTax support FAQ on how to contact Support - https://ttlc.intuit.com/questions/3401489
If the problem concerns any type of refund for fees, use the key words billing issues and do Not use the word Refund or you will get a phone number for tax refunds.
IRS Free File Program - https://apps.irs.gov/app/freeFile/