topic Re: Penality / Interest in Get your taxes done using TurboTax

Penality / Interest

tib1 — Fri, 10 Jul 2020 17:01:17 GMT

Why is turbotax assessing a Penality / Interest on my 2019 return?

Re: Penality / Interest

GiseleD — Fri, 10 Jul 2020 18:44:03 GMT

TurboTax does not assess penalties; the IRS and state tax authorities assess penalties. Are you referring to an underpayment penalty on your balance due?

According to the IRS:

Generally, most taxpayers will avoid this penalty if they either owe less than $1,000 in tax after subtracting their withholding and refundable credits, or if they paid withholding and estimated tax of at least 90% of the tax for the current year or 100% of the tax shown on the return for the prior year, whichever is smaller.

Re: Penality / Interest

Anonymous — Fri, 10 Jul 2020 18:52:28 GMT

the IRS does not assess interest on an underpayment of tax penalty unless the entire balance due, if any, isn't paid by 7/15/2020. if you had a stare return, that might have been due at an earlier date. Not all states extended the due date to 7/15. so now if you owe you have penalties and interest on the late payment.