I recently received a $20 penalty notice from the PA Dept. of Revenue for 2024's tax filing. I suspect this may be an underpayment penalty. I retired the prior year (2023) so I did not have any income in 2024 for which tax was withheld. (PA taxable income was less than $15k for 2024.) If this is in fact an underpayment penalty why did turbotax not pick up on this and alert me to the penalty when I filed so that I could pay the correct amount, including the penalty at that time?
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Underpayment penalty depends on several factors, one of which is the tax being paid on time quarterly. TurboTax has no way of knowing how the user wants to calculate the penalty.
It's not a matter of turbotax having no way of knowing how I want to calculate the penalty. It's that it seems to me that turbotax would have picked up on the fact that I was in a potential penalty situation at all, especially given that I also used turbotax for the previous tax year such that it would have had the data necessary to determine if I'd paid in 100% of the tax liability from the previous tax year. I don't have a problem with having to pay the penalty. It just seems very odd that turbotax would not have picked up on the fact that I was in a penalty situation and prompted me accordingly, so that I could have simply paid the penalty when I filed. Doesn't that seem odd to you too?
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