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How does TT estimate the underpayment penalty?
On 1040, line 37 reads "Subtract line 33 from line 24". But the TT filled a different amount, more than the subtract amount. The amount filled was the difference plus the value on line 38 "Estimated tax penalty".
I am guessing this is the proper practice although it is not strictly following the instruction on line 37.
My question is where the estimated tax penalty is calculated. Does TT calculate behind the door using a magic formula? A google search says it is calculated on "form 2210, line 19", but no such form is generated by TT for my tax return.
‎April 6, 2025
6:09 PM