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JOEROD248
New Member

How to remove underpayment penalty from my Louisiana state return ?

 
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3 Replies
Cindy0H
New Member

How to remove underpayment penalty from my Louisiana state return ?

Removing an underpayment penalty is not so easy.

According to Lousiana, the penalty is imposed by examining your estimated payments. Those are entered in the federal return. You may want to review what you entered.

Revised Statute 47:118 provides for a 12 percent penalty for underpayment of individual income tax. The penalty may be imposed if you did not pay enough estimated tax for the year or did not make estimated payments on time or in the required amount. The penalty is imposed on each underpayment for the number of days it was unpaid.

The only other way to change the penalty in TurboTax is if:

You received at least two-thirds of your total gross income from farming activities OR

You are a commercial fisherman and at least two-thirds of your total gross income is from fishing

In order to determine if an underpayment penalty is due and to compute the amount of the underpayment penalty, you must complete Form R-210R, Underpayment of Individual Income Tax Penalty Computation, and attach the completed form to your return.

You have a couple of options:

1. Override the penalty in FORMS MODE, but that has consequences: overriding may invalidate our 100% Accurate Calculations Guarantee. Additionally, returns that contain overrides cannot be e-filed. You may still get a bill from the state.

https://ttlc.intuit.com/replies/3299946


2. Fill out the Form R-210R and claim a waiver; print and mail in

instructions:

http://revenue.louisiana.gov/TaxForms/210Ri(1_19)F.pdf

form:

http://revenue.louisiana.gov/TaxForms/210R(1_19)F.pdf

If you have other questions about this, please ask in the comment box below.

How to remove underpayment penalty from my Louisiana state return ?

TurboTax has no option to modify my Louisiana State return to calculate the underpayment tax penalty.  I entered 4/15/2022 when filling in the form, and it calculated my penalty on a daily basis, but I'm paying in March and need to change the date.  TurboTax doesn't give me the option to go back to the data in my return.  TurboTax is forcing me to pay too much penalty interest by not allowing me to change the payment date..

LenaH
Employee Tax Expert

How to remove underpayment penalty from my Louisiana state return ?

Louisiana imposes an underpayment penalty on an individual's failure to sufficiently pay income tax throughout the year by withholding or declaration payments. If adequate tax was not paid in a period, you may owe a penalty of twelve percent per annum (12%) on the underpayment. The required annual payment is the lesser of: 90 percent of your 2021 Louisiana income tax liability OR 100 percent of your 2020 Louisiana income tax liability. The last date to make an estimated tax payment is January 15th following the tax year. Therefore, any amount due after that date would be subject to a penalty if sufficient tax was not paid during the year. 

 

With that being said, you can change the payment date when going through the underpayment penalty screens. 

 

To get back to this screen, please follow the instructions below:

  1. Open your return.
  2. Click on State.
  3. Click Edit next to Louisiana.
  4. Click Update next to Your Bottom Line on the page Revisit Your Louisiana Info

 

You can also elect to have the Department of Revenue calculate your penalty directly, rather than have TurboTax calculate the penalty for you. When going through the underpayment penalty screens, check the box next to Let the DOR calculate the penalty. This will remove the penalty from your return and the State of Louisiana will bill you directly. 

 

 

For more information on underpayment penalties, please see Individual Income Tax.

 

@watersm

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