Underpayment Penalty AND getting a refund

[WDM67]

For 2022, TurboTax indicates I have a Colorado tax underpayment penalty of $12. For simplicity, I am not contesting this (although I probably could).

Turbotax indicates I will get a substantial refund, so all is good.

The problem is, while getting almost to the end of the review steps (account #s, e-file directions, etc.), I haven't seen where I can pay this $12. Want to be sure it is paid!

It is possibly it is already deducted from my State refund amount, but I can't tell where that happened. If you can point me in the right direction where this is paid, it would be appreciated. Thx

[MonikaK1 · Accepted solution]

If you do not pay enough state tax by the due date of each of the payment periods, you may be charged a penalty for Colorado, even if you are due a refund when you file your income tax return. See this Colorado webpage for more information.

You can preview your return before filing to review the forms that TurboTax has prepared from your entries and to find out how your taxes were calculated. See here for details. 

If you have a refund due from Colorado that exceeds the amount of the underpayment penalty, then the penalty should be deducted from the refund. Check the Colorado state return. Line 35 shows the overpayment of tax. Line 41 shows the penalty and Line 42 shows the amount due with the return, if any.

Colorado taxpayers can also make payments online at this website if they choose.

[WDM67]

For clarification, I can see on the Colorado state form 104 line 37 my refund.

Then I see on form 204 my tax penalty calculation, and then back to form 104 line 41 the estimated tax penalty. What I don't see is how/when/where this is deducted from my refund.

[WDM67]

@MonikaK1 

"Check the Colorado state return. Line 35 shows the overpayment of tax. Line 41 shows the penalty and Line 42 shows the amount due with the return, if any."

I do show the $12 penalty on line 41, but line 42 is blank (which is interesting, as it is the "Amount you owe" which includes lines 38 through 41). 

So....I believe you are saying that the penalty will be deducted from my refund, is this correct, and I don't have to worry about it? I just want to make sure I am doing everything correctly.

Thank you,

[RobertB4444]

That is correct.  Your penalty will be deducted from your refund and you will receive the balance.

@WDM67 

[WDM67]

@RobertB4444 

Thank you. I never could find where it was deducted directly from my refund, but have some faith in Turbotax doing the right thing.