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outin16
New Member

Why am i being assessed a penalty in turbo tax for something i already paid to the IRS

Turbo tax is charging me for something i already paid the IRS back in November 2022

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2 Replies
MayaD
Expert Alumni

Why am i being assessed a penalty in turbo tax for something i already paid to the IRS

What was the penalty for?

Per IRS: If you don’t pay enough tax through withholding and estimated tax payments, you may be charged a penalty. You also may be charged a penalty if your estimated tax payments are late, even if you are due a refund when you file your tax return.

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Why am i being assessed a penalty in turbo tax for something i already paid to the IRS

???For an early withdrawal of some funds in an IRA or other retirement account??

 

You get credit for any withholding in box 4 of the 1099-R for......then the tax filing you are preparing now, is the final accounting for all your income including the $$ you took out.  It does all work out properly, BUT...the taxes you withheld may not have actually been enough to cover all of the tax assessed.  That depends on the entire totality of all your 2022 income and what tax bracket you end up in.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

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