TURBO TAX INCORRECTLY COMPUTED A PENALTY FOR UNDERPAYMENT OF TAXES ON MY 2022 FORM 1040-SR. MY TAX PAYMENTS DURING 2022 (BY WITHHOLDING AND ESTIMATED PAYMENTS) WERE LESS THAN $1000 FOR THE TAX OWED ON MY TAX RETURN AND MY TOTAL TAX PAYMENTS DURING 2022 WERE 98% OF MY TOTAL 2022 TAX LIABILITY. THEREFORE, NO PENALTY SHOULD HAVE BEEN CALCULATED BY TURBO TAX. HOW CAN I RECVEIVE A REFUND FROM TURBO TAX FOR THEIR CALCULATION ERROR?
I had a refund once and still had a penalty for not paying in evenly during the year. You might have been able to eliminate it or reduce it. Did you file yet? You can even pick not to include it and let the IRS figure any penalty for you. In fact, The amount Turbo Tax calculates on your 1040 line 38 is only an estimate. Turbo Tax can not figure it accurately because they don't know exactly when the IRS or state will get your return and tax due payment. It's very common and normal and expected for the IRS or state to bill you for more or send you a refund.
If you made uneven quarterly estimated tax payments during the year...or perhaps didn't send in 4 of them , then the default calculation, that both the IRS and TTX uses, can certainly end up with a penalty.
You might have been able to work thru the Underpayment Penalty calculations on the "Other Tax Situations" page before you filed....there you would have been able to go thru the procedure to prepare the form 2210AI which might have reduced, or eliminated the penalty.
Thank you - I have made a note of your suggestion for preparation of my taxes for next year.
Since you are using the Desktop software..
...and if you aren't completely fed up with tax prep for this year, and have some time.
You could check to see what's involved now.
Since you are in H&B, You would open your 2022 tax file.
Then do an immediate "Save-As" to some Test filename
Then, in that test file, go to the Personal taxes section, and in the "Other Tax Situations" tab slide down the menu to find the "Underpayment penalties" selection.
Going in there you'll end up finding what kinds of data you will need to collect in order to delineate all your sources of income, and tax payments by "quarter" (3mo,2mo,3mo,4mo).. You'll see what's involved to decide whether it's worth your effort.
.......and, since you are in a "Test" file, you can abandon it without screwing up the real file you already submitted for 2022.....or come back to it later to continue trying to see what happens if you complete the calculations.