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g3wallace
New Member

For the underpayment penalty you can elect to to treat the tax withheld as paid when it was actually withheld. I don't understand?

 
1 Reply
Opus 17
Level 15

For the underpayment penalty you can elect to to treat the tax withheld as paid when it was actually withheld. I don't understand?

The best thing to do is to decline Turbotax's offer to calculate a penalty, and let the IRS send you a bill 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 if it is your first time. (Interest can't be abated, though.)


Abatement https://www.irs.gov/businesses/small-businesses-self-employed/penalty-relief-due-to-first-time-penal...

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
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