topic Penalty/Interest Incorrectly Charged by TurboTax in After you file

Penalty/Interest Incorrectly Charged by TurboTax

dmheffron — Wed, 19 Aug 2020 03:33:21 GMT

TurboTax charged me penalty/interest for filing after April 15, 2020 when the filing was extended for 3 months by Congress! Now the IRS is charging me penalties and fees because I paid the wrong amount due, all because TurboTax didn't update their software. We are in the middle of a pandemic where every penny counts. What is TurboTax doing to mitigate this issue?

Re: Penalty/Interest Incorrectly Charged by TurboTax

VolvoGirl — Wed, 19 Aug 2020 03:37:48 GMT

Turbo Tax doesn't charge you for filing or paying after April 15. Did you have an amount on line 24? That is not for filing late. That is for something else.

If you do not pay enough tax, you may have to pay a penalty for underpayment of estimated tax. Even if you are getting a refund you can still owe a penalty for not paying in evenly during the year. Generally, most taxpayers will avoid this penalty if they owe less than $1,000 in tax after subtracting their withholdings and credits, or if they paid 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. It is included in your tax due or reduces your refund.

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. If the 2210 doesn't show up in the left column, click on Open Forms at the top of the left column. Type 2210 in the search box and open the 2210 form. Check box C to let the IRS calculate it.

Re: Penalty/Interest Incorrectly Charged by TurboTax

VolvoGirl — Wed, 19 Aug 2020 03:40:17 GMT

So did you pay the amount on line 23? Or did you subtract line 24 from it? And it's common for the IRS to send you a bill for more Penalty. It's based on when they actually get your tax due payment. Turbo Tax only can calculate an estimated penalty.

Re: Penalty/Interest Incorrectly Charged by TurboTax

dmheffron — Wed, 19 Aug 2020 03:43:41 GMT

thank you for clearing that up for me!

Re: Penalty/Interest Incorrectly Charged by TurboTax

dmheffron — Wed, 19 Aug 2020 03:53:17 GMT

I didn't even realize there was a dollar amount on line 24. I paid what was on the voucher and the voucher included the amount on line 24.

Re: Penalty/Interest Incorrectly Charged by TurboTax

VolvoGirl — Wed, 19 Aug 2020 04:13:43 GMT

If you didn't notice the amount on line 24 then why did you assume Turbo Tax was charging you a penalty? The amount on line 24 is included in line 23. You did send in your payment with the 1040V voucher? Not the 1040ES slips. Those are estimated prepayments for Next year, not your current tax due.