TurboTax Deluxe for Tax Year 2023 calculates a penalty for late payment of estimated federal and California state taxes. But we live in a county listed as a disaster area in announcements by both the IRS and the California Franchise Tax Board that made the deadline for all tax payments, including estimated taxes, 16 October 2023. Consequently, estimated taxes not paid in January, April, June, and September are not late until 17 October 2023. How to get TurboTax to recognize that due to the disaster declaration we did not make late payments and therefore not to calculate a penalty for underpayment (late payment)?
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For the federal tax return, at the end of the underpayment penalty section in TurboTax you come to a screen that says "Let the IRS Bill Me Later." That screen has two buttons: "Let the IRS Bill Me Later" and "Pay It Now." If you click "Let the IRS Bill Me Later" the penalty will be removed from your Form 1040.
Got it. Done that. But that is avoidance, not a TurboTax solution.
1. Responses from TurboTax support indicate that TurboTax "knows" about disaster declarations and should not calculate the penalty. I have not found the path to accomplish that.
2. The California return apparently does not have a similar path (let the California Franchise Tax Board calculate the penalty). The available strategy seems to be to request a waiver. But a waiver is not needed! There was no late payment.
In sum, I am looking for a TurboTax solution, rather than strategies to by-pass TurboTax.
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