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NicoleT
Level 1

Trying to get Michigan estimated tax penalty removed

TurboTax added a Michigan estimated tax penalty since we took a lot of money out of our IRA in 2019 to pay for medical expenses and COBRA. However, per MCLA 205.24(6), a penalty shall not be imposed if the taxpayer was not required to make estimated tax payments in the preceding tax year. We didn't have to pay estimated tax payments in 2018, yet TurboTax added a $222 penalty/interest anyway. Please advise how to get this waived, or whether I should just pay the $1,255 in taxes due without the penalty/interest. I figured I have until July to pay either way.

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NicoleT
Level 1

Trying to get Michigan estimated tax penalty removed

While I had no penalty applied in my federal return, I applied the federal directions to Michigan, checking off to let the state of Michigan bill me, rather than calculate the penalty. So that took the penalty off the state return.  Thank you!!

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4 Replies
MarilynG1
Expert Alumni

Trying to get Michigan estimated tax penalty removed

You are correct that you should qualify for an exception to the Underpayment Penalty.

 

Click this link for instructions on How to Remove Underpayment Penalty in your Federal return. 

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NicoleT
Level 1

Trying to get Michigan estimated tax penalty removed

Hi Marilyn,

 

Thank you for your response. The penalty was applied only in my Michigan return, not federal. Do I still need to make a change in the federal return to change Michigan?

 

Thank you,

Nicole

NicoleT
Level 1

Trying to get Michigan estimated tax penalty removed

While I had no penalty applied in my federal return, I applied the federal directions to Michigan, checking off to let the state of Michigan bill me, rather than calculate the penalty. So that took the penalty off the state return.  Thank you!!

MarilynG1
Expert Alumni

Trying to get Michigan estimated tax penalty removed

You are most welcome!

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**Mark the post that answers your question by clicking on "Mark as Best Answer"
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