I made on time and adequate quarterly payments and am getting a refund yet Turbotax added a $2 late fee. Not a big deal but why would that happen?
"$2 late fee" - Did you mean an underpayment of estimated tax? I am not aware that TurboTax charges a late fee.
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On 1040 line 38? Yes I had an underpayment penalty once when I had a refund. It's for not paying in evenly during the year.
You might be able to eliminate it or at least reduce it. You can go to Federal Taxes tab or Personal tab, under Other Tax Situations and select Start by the Underpayment Penalties. You will answer a series of questions that may reduce or eliminate the penalty. Or you can elect to have the IRS figure the penalty for you. It's form 2210.
Federal or Personal (for Home & Business Desktop)
Other Tax Situations
Additional Tax Payments
Underpayment Penalties - Click the Start or update button
If you have the desktop program you can switch to Forms Mode (click forms in the upper right (left for Mac)) and open the 2210 form. If the 2210 doesn't show up in the left column, click on Open Forms at the top of the left column. Type 2210 in the search box and open the 2210 form. Check box C to let the IRS calculate it.
...but for $2, I wouldn't bother trying to work thru the forms to eliminate the underpayment penalty.
Takes a lot of records gathered to provide the detail needed to supply all your income (wages, gains, dividends,interest) and tax payments by quarter (3mo,2mo,3mo,4mo). An hour or two...or more depending on how efficient you are in finding your details.
I've done it once for real, (and second time just as a test) and won't again unless the penalty gets over ~$50
BUT, that's just me.
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