Hi, I have an underpayment penalty on my NJ return. Turbotax is calculating the penalty incorrectly on the NJ-2210 form. As per my calculation I owe 130$ in penalty/interest, but turbotax is calculating 165. What is the best next step, should I file the return with 2210 (and wait for a refund from NJ) or without it (and wait for a bill from NJ).
My NJ tax for 2025 is 4481, 2025 W2 withholding was 644. I paid 3000 estimate tax but only on 1/12/2026. My 2024 NJ tax is 4987. Based on these numbers I am calculating the NJ underpayment penalty as 130 but TT is calculating it as 165.
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Since you feel strongly about the 2210, I recommend you file without the form.
You do meet the 80% of prior year liability test but had a significant payment in the 4th quarter. Interest calculated for days when taxes should have been paid (prior quarters) could be adding to your total.
@AmyC The worksheet that TT used to calculate the interest is not provided by NJ IRS. I checked and I couldn't find the worksheet on the NJ IRS site. The calculations that are there in the NJ-2210 worksheet are completely incorrect. I don't think I want to file that form with such terrible calculations. TT should look at the software which does this computation and fix it.
Thanks for confirming that NJ doesn't charge a fee or penalty to file without that form.
Here is the NJ 2210 for your reference. Letting NJ do the calculation is best.
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