Hello,
On 04/13/2024 I filed an electronic extension to file my 2023 return until 10/15/2024. I then electronically filed that return on 10/14/2024. I owed $2,588. I paid the entire amount with my return, via an electronic payment from my checking account.
When I filed the extension, I made a payment with it. In addition, I made an estimated payment in 2023. Unfortunately, these weren’t enough in order to cover my entire eventual balance. However, I made sure to claim both of these payments on my 2023 return. In addition, before I filed, I also made sure to check whether I owed any Estimated Payments penalty. I didn’t.
On 11/09/2024 I received a CP 14 notice, dated 11/04/2024. It showed that I have a balance due of $105.50, which is due by 11/25/2024. It’s for the interest that has accumulated on the $2,588 since 04/15/2024. I understand why the interest was assessed, and the IRS’s calculation of it seems correct to me. However, I have a couple of questions:
1) Going forward, is there a way to prevent this (other than to find more deductions or credits, or to overpay more in estimated payments)?
What I mean is, does TurboTax Desktop have a tool to check for how much interest I owe (similarly to the Estimated Payment penalty check tool), so that I can add this interest amount to my total payment amount at the time of filing the return, instead of waiting for the CP 14 notice?
2) Does TurboTax cover such a scenario in its money-back guarantee, which says that I won’t end up paying more than its calculated balance due (assuming that the data inputted was correct and complete)?
And, if so, how can I make a claim? (I tried finding an online contact method, but could only find the 1-800 phone number)
Thank you!
