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Level 1
posted Apr 24, 2025 3:22:03 PM

TurboTax calculated wrong interest penalty.

Did our 2024 return with TurboTax.

TurboTax calculated an underpayment penalty of $748.

I paid it.

 

Just got an IRS notice stating I overpaid the underpayment penalty and they are issuing a refund.

 

The over payment was by over $600.

 

A simple calculation and TurboTax can not get it right.

 

I worry what else is wrong in my return and not discovered / disclosed by the IRS.

 

dew

0 1 9696
1 Replies
Level 8
Apr 24, 2025 5:43:57 PM

see similar thread on this topic below, TT calculates underpayment using Form 2210 based on the information it's been given - any difference or adjustment to 2023 tax/AGI, either carried over from your 2023 return or input under Other Tax Situations / Underpayment Penalty, could affect the minimum safe harbor amount you needed to pay; or dates on estimated/final payments will affect penalty calculation etc.  IRS calculates it based on information in their system.

 

https://ttlc.intuit.com/community/taxes/discussion/re-the-amount-you-owe-formula-on-1040-line-37/01/3674963#M1359163