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Kalianyia
New Member

Filed extension, filed state in Oct, paid taxes that turbo tax said, got letter from state for penalty and interest

As the title says.

 

I'm so confused why I now owe additional penalties and interest to the state. I filed my extension through TurboTax in April, so TurboTax knew I had filed an extension. 

 

When I filed my state return in October, unbeknownst to me, TurboTax did not put the checkbox on my return that said I filed an extension. So I was charged a penalty by the state that I just got a letter for.

 

Additionally, TurboTax did not calculate the interest I owned for the late payment. So no additional fees or interest was added to my state payment. Again, all of this was unknown to me. 

 

I assumed, and I think fairly, that by me purchasing this software, that it would correctly indicate that I had filed an extension, and that it would see I was making my payment late and calculate the additional late fees and interest and add that onto my payment amount.

 

Having just got this letter from my state, I know owe additional fees and interest, because in my opinion, TurboTax failed to do what I would consider a basic feature. I just made the additional penalty and interest fees payment to the state to avoid any more shenanigans and interest accrual. However, I am quite unhappy with how this all played out.

 

What are my remedies?

 

If TurboTax can't figure this stuff out properly, is there alternative tax software that does, and that I can rely on to file my return properly and calculate my payment owed properly?

 

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1 Reply

Filed extension, filed state in Oct, paid taxes that turbo tax said, got letter from state for penalty and interest

Taxes owed on the 2023 return had to be paid on or before April 15, 2024 to avoid a failure to pay penalty.  Filing the extension only gave you until October 15, 2024 to file the actual tax return.  It was not an extension for the payment of taxes owed.

TurboTax cannot calculate late payment penalties and interest since it has no way to know if and when you paid the taxes owed.  Only the tax authority, IRS or State, can calculate the penalties and interest after receiving the taxes owed.

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