DawnC
Expert Alumni

Retirement tax questions

You have an underpayment penalty and TurboTax is asking you if you want the software to calculate it and add it to your return.  The best thing to do is to decline TurboTax's offer to calculate the penalty and let the IRS send you a bill later or after you pay the taxes.  The calculation is almost always off by a few dollars and you end up getting a bill anyway.

Plus, when you get the bill, you can apply for an abatement of the penalty if it is your first time, although the interest can't be abated.  

 

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