PADept of Revenue sent a mail saying penalty amount waived

[sankar_mukh]

I submitted TT return on 2/24. It was accepted and I requested my bank to pay my state tax due on April 14.

However, I got a mail from PA revenue, stating that :

Penalty Type: Estimated Underpayment Penalty

Penalty Amount Waived: $xx.xx

Period Ending: 12/31/2022

At the bottom off the letter, it says no further action is required at this time.

TurboTax caculated I owe X amount of tax. Will this penalty amount , say Y will be deducted from the tax I owe?

How will this work? I already instructed bank through TT to pay X amount of taxes on April 14.

Thanks.

[JosephS1]

From your question, I am surmising that the "X" amount owed included the penalty due to PA.  If you authorized your bank to pay the X amount on April 14, then that is the amount that will be paid as of right now without contacting your financial institution.  

If the actual amount now owed is the smaller amount and for which you have an actual amount known, I suggest you contact your bank to amend the amount to be paid.  It will probably entail a cancellation of the original amount and the new smaller amount put in to your payment que with the bank for April 14, 2023.  I also suggest you get written confirmation from your bank that the original amount to be paid is now cancelled and the new smaller amount will be the amount paid.

If you decide to let the larger amount be paid inclusive of the underpayment penalty that was waived, the PA Department of Revenue will either refund the amount to you eventually, or credit the amount to your 2023 tax liability.  You should receive a letter if the full payment goes through as to what you want to do regarding the overpayment.

PA Dept of Revenue Overpayments

@sankar_mukh 

[sankar_mukh]

Hi,

I filled out on my turbotax and there I instructed my bank for direct payment. I inserted my routing number etc and filled out the TT form.
It seemed evrything was ok and it said it will pay on April 24.

However, now when I login to Turbotax I don't see the info that I instructed my bank to pay on April 24.

When I logon to my bank, there is no upcoming payment on April 24.
Is there a way to check that Turbotax has the info ? My opening page says  federal and state tax return have been accepted. 
Thanks.

[HeatherPLO]

Please see our Help Article which provides instructions on how you review your tax payment method within TurboTax Online.  

@sankar_mukh