topic Re: I have paid what Turbotax estimated i owed before filing for extensionm, and I don't appear to owe anything on Turbotax, but it says I have an underpayment penalty. in Get your taxes done using TurboTax

I have paid what Turbotax estimated i owed before filing for extensionm, and I don't appear to owe anything on Turbotax, but it says I have an underpayment penalty.

pfbrousseau — Wed, 04 Feb 2026 08:08:05 GMT

Turbotax says i have a $41 late payment penalty. I filed for an extension and paid everything Turbotax said i owed at the time. When requested a penalty exemption, I am back to owing nothing. Is this a bug? How could i owe nothing other than the "late payment" penalty?

Re: I have paid what Turbotax estimated i owed before filing for extensionm, and I don't appear to owe anything on Turbotax, but it says I have an underpayment penalty.

VolvoGirl — Wed, 08 Oct 2025 20:43:20 GMT

It's not for filing or paying late. It doesn't have to do with last year's tax return or not paying estimates for this year. The penalty is an "estimated" amount. It's a penalty if you owe too much or for not paying in enough withholding during the year or not paying in evenly. Even if you are getting a refund you can still owe a penalty.

The underpayment penalty amount Turbo Tax calculates on your 1040 or state is only an estimate. Turbo Tax can not figure it accurately because they don't know exactly when the IRS or state will get your return and tax due payment. It's very common and normal and expected for the IRS or state to bill you for more or send you a refund.

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: I have paid what Turbotax estimated i owed before filing for extensionm, and I don't appear to owe anything on Turbotax, but it says I have an underpayment penalty.

SteamTrain — Wed, 08 Oct 2025 23:53:29 GMT

Just make sure that the amount you already paid is included on one of the form 1040 lines, indicating your prior payments to the IRS, on your final 2024 tax return.