topic Estimated Penalty? in Get your taxes done using TurboTax

Estimated Penalty?

lcsarsfieldiii — Sun, 08 Mar 2020 22:39:34 GMT

My estimated summary shows a $67 penalty. I am not aware of anything I have done to incur it - what are the sources / causes of penalties on a tax return that is not past due?

Re: Estimated Penalty?

DavidD66 — Sun, 08 Mar 2020 23:01:16 GMT

If your return is showing a penalty, it would be for "Underpayment of Estimated Tax", or in other words, not paying enough via payroll withholding or estimated payments throughout the year.

Re: Estimated Penalty?

VolvoGirl — Sun, 08 Mar 2020 23:04:06 GMT

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

If you have the desktop program you can switch to Forms Mode (click forms in the upper right (left for Mac)) and open the 2210 form.

ps....I had a refund once and still had a penalty for not paying in evenly during the year.

Re: Estimated Penalty?

alctfl — Sun, 08 Mar 2020 23:04:41 GMT

We must pay at least 90% of the tax we owe before 12/31 of the tax year, or incur a penalty.

Re: Estimated Penalty?

stlucia95 — Sat, 21 Mar 2020 14:27:13 GMT

We are getting penalized for cashing in Bonds for tuition for my son in college. These were bought before 1989. so they are not tax exempt. so instead of asking TT is ratting us out as if we are tax evaders and assessing a penalty they don't have the power to enforce. I may not have this tax situation int he future either so it needs to be eliminated.

If the government is getting all their money back at the end of the year why file quarterly estimated returns on one time tax events.

I didn't see this before I filed so now I want to eliminate it if possible and file an amended return.

Re: Estimated Penalty?

KrisD15 — Sat, 21 Mar 2020 20:39:28 GMT

When you enter the 1099-INT to report the interest, a screen asks if they were EE bonds and if so, were they used for education expenses.

This would allow the interest to be tax free.

Re: Estimated Penalty?

Penalty2020 — Tue, 31 Mar 2020 20:05:32 GMT

I am showing a $140 penalty. Should I have more MD state tax taken out in my pension?

Re: Estimated Penalty?

KatrinaB48 — Tue, 31 Mar 2020 20:12:50 GMT

Yes, I would advise having more state tax withheld from your pension. This is a common problem that taxpayers have after retirement since there is no money being withheld form an employer.

Re: Estimated Penalty?

stlucia95 — Wed, 15 Apr 2020 21:52:55 GMT

These were purchased before 1988 and therefore not tax exempt. They were also inherited from relatives

Re: Estimated Penalty?

stlucia95 — Wed, 15 Apr 2020 21:54:07 GMT

I've done this and now my return is being rejected. What a mess.