Thank you for sending the token. I have had an opportunity to review your tax return. Everything in the return is correct.
I think the reason why you feel that it is not calculating correctly is when you enter the child TurboTax automatically adds the full amount of the child tax credit ($3,000) per child for a total of $6,000.
When the Advanced Child Tax Credit payment was entered, your refund is reduced because you already received the $3,000. The balance of the $6,000 is on Line 28.
The penalty result is because your tax obligation is $16,105 and your W-2 withholdings are $10,514 which leaves a tax liability of $5,591 and then reduces this by the $3,000 of Refundable Child Tax Credit leaves a balance due of $2,591. The penalty of $17 is due to the fact that you did not have enough taxes withheld or paid. To avoid the penalty the rule is that 90% of the tax liability must be paid.
If you received a refund last year, then you could get the penalty waived. To waive:
- Search Underpayment Penalty
- Click on Jump to
- Go through the questions and answer the questions. Be sure to answer Yes you want to waive the penalty and then waive all.
- The explanation would be something to the fact that the Penalty is due to the Advanced Child Tax Credit which reduced the credit you would normally have received and caused you to owe instead of a refund. If you received a refund in 2020, you can also state that you received a refund on your 2020 return.
In summary, the return is completed correctly. You can waive the penalty if you would like.
