Underpayment penalties are assessed if you don't withhold or pay enough tax on income received during each quarter.
In fact, it's entirely possible to get hit with an underpayment penalty even though you paid your tax bill in full by the April deadline or are getting a refund.
We'll automatically generate a Form 2210 if your return needs it.
Note: You'll need your prior year tax return to answer the questions. (Providing this information may reduce or eliminate the underpayment penalty being calculated.
- Sign in to TurboTax and open or continue your return.
- Search for underpayment of taxes.
- Select the Jump to link in the search results.
- The Underpayment Penalties screen will display the penalty amount. Select Continue to review this section and make any needed adjustments.
- Note: If you see No Underpayment Penalty, you either haven't entered your income and/or estimated tax payments yet, or you aren't subject to an underpayment penalty.
(Optional) Keep going, and when you get to the Annualized Income Method screen, answer Yes if you want to see if we can reduce the penalty. It will require breaking up your income and withholding and dectuctions over certain periods of time.
underpayment penalty
