On my original 2024 return, I paid $x. I amended my 2024 taxes, and on line 16 of 1040-x, turbotax entered $153 lower than what I paid. No late fees. Why the difference?

[elizabethelmoreesq]

Hopefully the above details describe the situation, but I'm happy to provide more.

[VolvoGirl · Accepted solution]

Check your 1040 did you have a penalty amount on line 38?  That is included in line  37 but is not included on the amended line 16 payment.

[elizabethelmoreesq]

You are amazing. In a few words, you quickly answered a question that two TurboTax experts in a total of 60+ minutes of phone conversations could not answer (and weirdly refused to answer - the second guy said it was probably based on some schedules and worksheets, but refused to tell me which). You are exactly right.

I'm sorry, but I have a follow up. Line 38 shows the exact $153 difference. But it doesn't say what it is based on. I paid my taxes early. I do have estimated tax payments, but I don't think those would have been low - and anyway, I can't figure out where/how it was calculated.

Thank you again!!!

[elizabethelmoreesq]

I looked, and there's no Form 2210 in my return.

[fanfare]

Penalties:
"1040-x Line 16: Subtract any penalty from the amount you owe reported on original 1040.
Don't try to include, but ignore, any new or changed penalty."  --- IRS

IRS will calculate your new penalty, if any,  on their own and will bill you.

@elizabethelmoreesq 

[fanfare]

Even paying "amount you owe" early,

you can be penalized for failing to meet the "Required Annual Payment" via withholding and/or Estimated Tax Payments on time.

@elizabethelmoreesq 

[elizabethelmoreesq]

Thank you again! I suspect you're right and it was one of those issues. But how can I figure out how Turbotax calculated that amount? They just inserted the amount $153 with no indication where it came from. I have no idea if it's right or not. 

It's important that I figure out the basis because my employer will (hopefully) cover any penalties due to errors on their end. 

[fanfare]

You are responsible to make sure your W-4 submitted to your employer is correct .

Your employer will not pay your fines.

See intructions for W-4 to enter the correct amount based on your situation.

If you  meet the "Required Annual Payment"
entirely through paycheck withholding, the timing does not matter. ES payments are not needed. There will be no penalty.

@elizabethelmoreesq 

[VolvoGirl]

If you had a penalty on 1040 line 38 I think you should have had form 2210.

If you do not pay in enough tax from withholding and estimates, you may have to pay a penalty for underpayment of estimated tax.The penalty is just an estimate so it is possible for the IRS to recalculate it and send you a refund or a bill for more.

Even if you are getting a refund you can still owe a penalty for not paying in evenly during the year. Generally, most taxpayers will avoid this penalty if they owe less than $1,000 in tax after subtracting their withholdings and credits, or if they paid at least 90% of the tax for the current year, or 100% of the tax shown on the return for the prior year, whichever is smaller. It is included in your tax due or reduces your refund.

If you get a penalty on 1040 line 38, 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.

How to add form 2210 for Underpayment Penalty
https://ttlc.intuit.com/community/tax-payments/help/how-do-i-add-form-2210/00/25703

It's under

Federal tab or Personal (for Home & Business Desktop)

Other Tax Situations

Additional Tax Payments

Underpayment Penalties - Click the Start or update button

IRS Form 2210
https://www.irs.gov/pub/irs-pdf/f2210.pdf