So, I guess this will be my final post on this topic.
Just got a letter from the IRS. I am getting a refund of $52.14 because my under withholding penalty was improperly calculated on my return. To get the full story you will have to read my other posts on this topic, but TurboTax initially calculated my underpayment penalty at over $1,000. I went back to the portion of the Interview where data was input to enable the software to calculate the underpayment penalty and elected to use the annualized method, hoping that this would reduce the penalty since over half of my annual income came in the form of RMD's which were received in December. Amazingly, even after annualizing my income, this produced no reduction in the calculated underpayment penalty. I left the questionnaire and looked at the actual forms and noted that on the penalty worksheet, my new election to annualize my income had not been selected. I proceeded to manually complete the relevant forms and this time the penalty was reduced to $534. A sigh of relief.
Now in my mailbox I received a dreaded letter from the IRS. Good new! (I guess). TurboTax had overcalculated the under payment penalty and I am getting a refund of $52.14. I am not going to look this gift horse in the mouth, but there is a problem with the TT software in this area.
