Penalty/Interest

Forum|Forum|5 years ago
July 15, 2021
10 replies
41 views

I have not received my Federal refund after 2 months. I was checking my hard copy of my filed taxes and noticed Penalty/Interest $42. Why? I thought the deadline to file was given until 5/17/21 due to Covid. My Federal return was accepted on 5/16/21. I had paid my quarterly taxes and am due to receive a sizable refund. Any idea what the $42 Penalty/Interest was for? And I find it unusual that I have not received my refund yet. In all the years I have used Turbo Tax, I have always received my refund within 2 weeks.

Critter-3

Level 15

If you mean line 38 on the form 1040 that is an estimated under withholding penalty which can still be assessed even if you have a refund on the return. Look at lines 34 & 35a ... the difference should be line 38.

Feiler51Author

Level 2

Thank you for your reply. That's exactly what it is. It's news to me that you can be penalized even though my refund is close to $4,000. I obviously paid enough to cover what I owed. It's only $42, but I'm in shock that I would be penalized when I paid all that I owe. Live and learn I guess.

Critter-3

Level 15

The IRS will not allow you to wait to pay your taxes on the last day of filing or late in the year ... it is a "pay as you go" system and that is how penalties are accrued. If your income was earned unevenly during the year and the program says you owe a penalty then you can use the annualized method to reduce or negate the penalty ... for $42 it is probably not worth the effort especially if you did not keep excellent and detailed quarterly records.