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Level 2
posted Mar 16, 2024 6:35:23 AM

Why does TurboTax Deluxe list a tax penalty in forms when there should not be one? How do I trace it back to what caused it?

My return is so simple: only 3 1099-R entries, one interest entry, using standard deduction.

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1 Best answer
Expert Alumni
Mar 16, 2024 6:55:23 AM

You may have an underpayment penalty. The tax system is a pay as you go system. If you don't have enough withholding from your income, you can get hit with an underpayment penalty .  Review the IRS topic 306, Penalty for underpayment of estimated tax for additional information.

 

Also, review the TurboTax Help article Why am I getting an underpayment penalty?

1 Replies
Expert Alumni
Mar 16, 2024 6:55:23 AM

You may have an underpayment penalty. The tax system is a pay as you go system. If you don't have enough withholding from your income, you can get hit with an underpayment penalty .  Review the IRS topic 306, Penalty for underpayment of estimated tax for additional information.

 

Also, review the TurboTax Help article Why am I getting an underpayment penalty?