TT is forwarding a wrong refund amount to next year due to a IRS penalty

FLBuchholz · ‎April 8, 2026

TT desktop on MacOS. TT Home and Business product for 2025.

Using TT, I prepared my 2025 federal tax return. It showed a refund due, which I applied to my 2026 taxes. Then after the return was accepted by IRS, I was assessed a penalty for underestimating tax payments. The penalty is fair, but of course it reduces the refund that is applied to 2026 taxes. Next year, TT will import the original refund into the 2026 return, but this figure is inaccurate due to the penalty. How do I put the IRS-imposed-penalty-after-the-return into TT so that the correct amount is applied to 2026 taxes?

baldietax · ‎April 9, 2026

for 2026 taxes, under Other Tax Situations / Estimates And Other Taxes Paid / Other Income Taxes there will be a section for "2025 Refund Applied to 2026" which I assume will be pre-filled with the 2025 carryover and you should be able to amend it there. Also in Forms mode you should see it on the Tax Payments Worksheet.

(at least this is for the Premier version I assume H&B has similar sections).

FLBuchholz

Thanks for the response. Yes, I found that I can change the amount forwarded to the next year by using the Forms view, and editing the amount to forward right there. Then the corrected amount is placed on the 1040, as desired.