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Level 1
posted Dec 31, 2023 4:26:26 PM

Safe Harbor Based on Prior Year Taxes

Hi,

Am using Turbo Tax on a trust account for the first time this year.  Between applying 2022 refund and an estimate paid in Q1, we are at 110% of last year's taxes.  But, TurboTax doesn't know this and assumes there should be a penalty based on 2023 numbers only.

How do I either enter the 2022 tax amount so TT can realize safe harbor was reached or how do I remove the penalty?

Thanks,

Gil

0 2 1348
2 Replies
Level 15
Dec 31, 2023 4:56:23 PM

Go through the Underpayment Penalty section.

 

Level 1
Jan 1, 2024 1:56:08 PM

Thank you!! worked perfectly 🙂

 

Figured it was user error somewhere...