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Level 2
posted Mar 18, 2021 8:21:10 PM

Underpayment Penalty - Date Calculation

When I was figuring my underpayment penalty on TurboTax, I was asked which date I would pay the tax owed. I chose 03/08/21 thinking I would mail a check the next day, but I have decided to wait until my return is processed before paying. Is waiting increasing my penalty, or will my underpayment penalty be accurate as long as I pay before 04/15/21? I can't imagine it would fluctuate by more than a few dollars (my penalty was a small amount), so I am more interested in how this works than anything. When I reviewed my tax return, I could not find a reference to the date (03/08/21) that I had inputted or a number of days until payment or anything of that nature that was part of the underpayment calculation.

0 5 478
5 Replies
Level 15
Mar 19, 2021 12:14:03 AM

the penalty is computed through 4/15/21  or the date of payment whichever is first. 

Level 3
May 1, 2021 9:02:54 AM

Why 15 April if the due date is 17 May?

 

In the step-by-step (Premier download) it will use the earlier if 15 April or your pay date. If I pay 17 May will it calc based on 15 April?

Level 15
May 1, 2021 9:11:04 AM

The penalty is calculated as of the date you pay or the filing deadline (which is 5/17 for the 2020 returns) whichever happens latter.  

Level 3
May 1, 2021 12:12:59 PM

Agree.   However, April 15 is what it says in the Step-by-step

Level 15
May 1, 2021 12:13:59 PM

Ignore the old date.