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New Member
posted Jun 4, 2019 9:32:14 PM

How can i override the calculated tax penalty appearing on line 79

How do I change 1040 line 79 (tax penalty) to $0?  I believe TurboTax is incorrect and I do not owe any penalty, but I don't see a way to change it to $0.

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1 Best answer
Level 7
Jun 4, 2019 9:32:16 PM

You have two options -

1.  If you have been assessed an underpayment penalty, then you can see if you may qualify for an exception to the penalty.  You may want to look into these exceptions if this is the first year you owed tax and it is not a normal occurrence (i.e. you had one time income this year).  If you qualify for an exception, then this will eliminate the penalty.

You can review the underpayment penalty section by using one of the following two methods  

First, you can perform a search within the program. 

  • Log in and click Take Me to My Return
  • Use the search icon in upper right hand corner (magnifying glass icon)
  • Search for “underpayment penalty”
  • Click the “Jump to underpayment penalty” link
  • This will take you directly to the section of the program where you can review the underpayment penalty and possibly qualify for an exception

Second, you can use a step by step method of getting the to same place above
  • Log in and click Take Me to My Return
  • Click Federal Taxes (Personal if in Self-Employed)
  • Select Other Tax Situations
  • Scroll down to Additional Tax Payments
  • Click start/edit next to Underpayment Penalties 

2.  You can choose to have the IRS figure out your penalty.  Go through the above section for Underpayment Penalty and during that interview, one of the questions will ask if you would rather have the IRS calculate your penalty.  Say Yes, and this will override any penalty TurboTax has calculated.  If you are liable for a penalty, the IRS will send you a bill for this amount.  I would recommend you look through the possible exceptions first.

4 Replies
Level 7
Jun 4, 2019 9:32:16 PM

You have two options -

1.  If you have been assessed an underpayment penalty, then you can see if you may qualify for an exception to the penalty.  You may want to look into these exceptions if this is the first year you owed tax and it is not a normal occurrence (i.e. you had one time income this year).  If you qualify for an exception, then this will eliminate the penalty.

You can review the underpayment penalty section by using one of the following two methods  

First, you can perform a search within the program. 

  • Log in and click Take Me to My Return
  • Use the search icon in upper right hand corner (magnifying glass icon)
  • Search for “underpayment penalty”
  • Click the “Jump to underpayment penalty” link
  • This will take you directly to the section of the program where you can review the underpayment penalty and possibly qualify for an exception

Second, you can use a step by step method of getting the to same place above
  • Log in and click Take Me to My Return
  • Click Federal Taxes (Personal if in Self-Employed)
  • Select Other Tax Situations
  • Scroll down to Additional Tax Payments
  • Click start/edit next to Underpayment Penalties 

2.  You can choose to have the IRS figure out your penalty.  Go through the above section for Underpayment Penalty and during that interview, one of the questions will ask if you would rather have the IRS calculate your penalty.  Say Yes, and this will override any penalty TurboTax has calculated.  If you are liable for a penalty, the IRS will send you a bill for this amount.  I would recommend you look through the possible exceptions first.

New Member
Apr 14, 2020 10:39:08 AM

I would like to do option 2 above, and I have gone through that referenced section (Underpayment Penalties) multiple times, but the Windows version of the product (for tax year 2019) doesn't seem to have an option to have the IRS figure out your penalty. We are using TurboTax Home & Business. Is it somewhere else on the Windows version (as opposed to the web-based version)?

 

Thanks

New Member
Jul 11, 2020 12:49:53 PM

This does not work.  I can remove the form but it doesn't recalculate.  In addition, there is no option to have the IRS recalculate it. 

Not applicable
May 9, 2021 11:15:04 PM

This did work. I was able to have IRS bill me. Prior comments are from 2020, so maybe updated.