topic Does turbo tax automatically add underpayment penalties to my amount due? Or do I need to go to the irs website to pay them? in Get your taxes done using TurboTax

Does turbo tax automatically add underpayment penalties to my amount due? Or do I need to go to the irs website to pay them?

machiahkisses13 — Tue, 03 Feb 2026 10:19:40 GMT

Re: Does turbo tax automatically add underpayment penalties to my amount due? Or do I need to go to the irs website to pay them?

DoninGA — Mon, 17 Feb 2025 18:51:39 GMT

TurboTax will enter an estimated tax penalty on the Form 1040 Line 38 if a penalty is required. The penalty will be included in the taxes owed or it will reduce the amount of a tax refund.

Re: Does turbo tax automatically add underpayment penalties to my amount due? Or do I need to go ...

TomK2023 — Mon, 17 Feb 2025 19:01:55 GMT

If you are responsible for an underpayment penalty, the program will automatically compute and add that amount to your return, and reduce any refund or increase your tax liability as applicable.

Enter Underpayment Penalty here.

Open your return (if not already open).
Enter "underpayment penalty" in the Search box.
Click on "Jump to underpayment penalty" link.

Re: Does turbo tax automatically add underpayment penalties to my amount due? Or do I need to go ...

pablokent — Tue, 18 Feb 2025 02:05:37 GMT

TurboTax added a $456 Tax Penalty to my 2024 Taxes on Line 38. The underpayment amount was $1000, so the total I owe is $1456. This year, I used both TurboTax and FreeTax, as a comparison. FreeTax computed No tax penalty. So I think I'll file with them. I paid $63,000 of taxes in calendar year 2024, so my underpayment was very minor. Seems like a steep tax penalty that TurboTax calculates. 50% of payment due.

Re: Does turbo tax automatically add underpayment penalties to my amount due? Or do I need to go ...

VolvoGirl — Tue, 18 Feb 2025 02:06:51 GMT

@pablokent If you get a penalty on 1040 line 38, you might be able to eliminate it or at least reduce it. You can go to Federal Taxes tab or Personal tab, under Other Tax Situations and select Start by the Underpayment Penalties. You will answer a series of questions that may reduce or eliminate the penalty. Or you can elect to have the IRS figure the penalty for you. It's form 2210.

How to add form 2210 for Underpayment Penalty
https://ttlc.intuit.com/community/tax-payments/help/how-do-i-add-form-2210/00/25703

It's under

Federal or Personal (for Home & Business Desktop)

Other Tax Situations

Additional Tax Payments

Underpayment Penalties - Click the Start or update button

Re: Does turbo tax automatically add underpayment penalties to my amount due? Or do I need to go ...

jqjyjohnma — Tue, 17 Mar 2026 17:41:55 GMT

TurboTax desktop version does not show how to pay underpayment penalty via the Program nor deduct the amount from my refund I will receive. IRS Direct Pay doe not have an item to pay underpayment penalty. Please advise.

Re: Does turbo tax automatically add underpayment penalties to my amount due? Or do I need to go ...

VolvoGirl — Tue, 17 Mar 2026 17:46:44 GMT

Why are you trying to pay it separately? If you have a penalty on 1040 line 38 it either reduced the refund on line 35a or is included in the tax due on line 37. You don't have to do anything. And if the IRS adjusts the penalty they will either send you a bill for more or increase your refund.

Re: Does turbo tax automatically add underpayment penalties to my amount due? Or do I need to go ...

jqjyjohnma — Wed, 18 Mar 2026 22:21:24 GMT

TurboTax did not reduce the amount of refund by the underpayment penalty . The program has no info on how to address paying the penalty. Please help.

Re: Does turbo tax automatically add underpayment penalties to my amount due? Or do I need to go ...

VolvoGirl — Wed, 18 Mar 2026 23:38:43 GMT

Is there a penalty on 1040 line 38? If there is then the refund on line 35a should be less than line 34. Or where are you seeing a penalty? How much is the penalty? I would wait and see if the IRS sends the refund on line 35a or reduces it. Or wait for the IRS to send you a bill .

If you have the Desktop program switch to Forms mode and check the actual 1040 and see if there is form 2210 for penalty.

If Turbo Tax calculates a penalty on 1040 line 38…..You might be able to eliminate it or at least reduce it. You can go to Federal Taxes tab or Personal tab, under Other Tax Situations and select Start by the Underpayment Penalties. You will answer a series of questions that may reduce or eliminate the penalty. Or you can elect to have the IRS figure the penalty for you. It's form 2210.

It's under

Federal or Personal (for Home & Business Desktop)

Other Tax Situations

Additional Tax Payments

Underpayment Penalties - Click the Start or update button

Re: Does turbo tax automatically add underpayment penalties to my amount due? Or do I need to go ...

VolvoGirl — Wed, 18 Mar 2026 23:56:22 GMT

I haven’t seen anyone else reporting this. But having a penalty when you have a refund is probably uncommon. I had a refund and penalty once. So it could be a bug in Turbo Tax. Can you post a screen shot that includes 1040 lines 34 - 38?

See IRS 1040 instructions page 65 for line 38. Middle of page…Figuring the penalty

https://www.irs.gov/pub/irs-pdf/i1040gi.pdf

Re: Does turbo tax automatically add underpayment penalties to my amount due? Or do I need to go ...

amitlohia — Mon, 20 Apr 2026 23:41:28 GMT

Having similar problem. Under Pentaly is calculating correctly but not adding as part of the payment in Amendend returns. This is same for State (California) too.

Re: Does turbo tax automatically add underpayment penalties to my amount due? Or do I need to go ...

MonikaK1 — Tue, 21 Apr 2026 15:09:31 GMT

Are you amending your return because you owe additional tax? If so, TurboTax often calculates an underpayment penalty (Form 2210) to estimate what you might owe, but it doesn't automatically add it to the amended return (Form 1040X) because the penalty is technically added to your tax liability by the IRS (or FTB) later and the form is only required to be included in the return if one or more boxes in Part II of the form applies.

If you saw the calculation of the penalty, you can submit payment for it or let the IRS/FTB bill you for it. You could also cause the form to be included in your return by requesting a waiver in the interview section.

If you want to force TurboTax to print the form by requesting a waiver, in TurboTax Online:

Open your tax return.
Select Federal, then Other Tax Situations.
Select Start or Update to the right of Underpayment penalties.
You can trigger the waiver by answering Yes to Penalty Waivers.
This will remove the penalty from your return, but it should also print the Form 2210.
If you don't want to request a waiver, you can go back through the interview and change your choice.

See this TurboTax tips article for more information about Form 2210.

@amitlohia