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Level 2

Question

penalty for not withholding enough tax

Forum|Forum|2 years ago
February 28, 2024
1 reply
3 views

Help! I did not know (how would I know???) that I need to withhold on interest income??

There's a $380 penalty in my return! Shouldn't TurboTax have flagged the possible need to withhold quarterly? Is it true that there needs to be withholding on interest income and why? Anyway, I must please get the penalty removed or dramatically reduced. Would appreciate your help.

Ask the Experts - SelfEmployed - Feb 2024

Level 15

You may be able to eliminate or reduce the underpayment penalty by processing IRS form 2210.

The penalty is computed on IRS form 2210 and can be computed by the regular method or the short method.

Follow these directions to access the interview questions:

Down the left side of the screen, click on Federal.
Down the left side of the screen, click on Other Tax Situations.
Scroll down to Additional Tax Payments, click the down arrow.
Click Start/Revisit to the right of Underpayment Penalties.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

Vegas3825Author

Level 2

Thanks so much! Will try and see how it goes.

Vegas3825Author

Level 2

Suggested solution didn't work.