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rbyrnes99
New Member

why do i need to put n the amount of taxes owed last yr on this yrs return because I owe more than 500

 
5 Replies
MinhT1
Expert Alumni

why do i need to put n the amount of taxes owed last yr on this yrs return because I owe more than 500

No, the amount of taxes owed for 2018 is not reported on your 2019 tax return.

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rbyrnes99
New Member

why do i need to put n the amount of taxes owed last yr on this yrs return because I owe more than 500

thank you but why does it say "you may owe underpayment penalty for 2019" Enter your 2018 taxes from MI 1040 line 21minus lines 25, 26, 27b, 28.  I did owe $68 last yr but line 21 is 300.

CatinaT1
Expert Alumni

why do i need to put n the amount of taxes owed last yr on this yrs return because I owe more than 500

It is determining if you meet the threshold for an underpayment penalty.  Entering this information will determine if you are required to pay any underpayment penalty.  If you only owed $68 last year I am guessing you won't be subject to it, but let TurboTax help you determine that.

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rbyrnes99
New Member

why do i need to put n the amount of taxes owed last yr on this yrs return because I owe more than 500

again it's not asking me to put in $68 but the $300 I then owe a penalty because I owe the state $600. because of capitol gains for this yr. and once i put the $300 in I now owe almost $800. i don't understand this

AmyC
Expert Alumni

why do i need to put n the amount of taxes owed last yr on this yrs return because I owe more than 500

Yes, the program is comparing the liabilities. To go from $600 to $800 is steep. That sounds like too much based on the instructions.

 

MI-1040 Book with forms page 12, left side shows that if you more than $500, you owe a penalty. It also states that MI will be glad to calculate the penalty for you.

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