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Level 1
posted Mar 16, 2025 2:45:35 PM

IRS recalculated 2023 taxes and sent refund + where to enter

Hello,

In May 2024 IRS notified me they made a change to 2023 form 1040, and refunded an underpayment penalty of $306.This was reduced because of a presidentially declared disaster area.  Where do I enter that on the 2024 taxes?

 

Thank you very much,

 

Iris

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1 Best answer
Expert Alumni
Mar 16, 2025 2:56:54 PM

You do not need to enter this anywhere on your tax return.  Underpayment penalties aren't deductible, so you did not take a deduction when you paid it.  Now, you are receiving a refund for the payment, and you do not need to claim any income for the refund.  

1 Replies
Expert Alumni
Mar 16, 2025 2:56:54 PM

You do not need to enter this anywhere on your tax return.  Underpayment penalties aren't deductible, so you did not take a deduction when you paid it.  Now, you are receiving a refund for the payment, and you do not need to claim any income for the refund.