turbotax icon
Showing results for 
Search instead for 
Did you mean: 
Ask the Experts about Extension Filing! >> Event happening TODAY!
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

gary boyd
New Member

Tax penalty

2 Replies
gary boyd
New Member

Tax penalty

Why am I being charged a $95 penalty (line 24 of form 1040-SR)?  I paid my taxed in full last year and will do so this year.  However, last year we forgot to sign in one place and it was sent back to us... is that the penalty??

Expert Alumni

Tax penalty

If you owe more than $1,000, when you file your tax return, you may be subject to a penalty.


Excerpt from the IRS -


"The United States income tax system is a pay-as-you-go tax system, which means that you must pay income tax as you earn or receive your income during the year. You can do this either through withholding or by making estimated tax payments


If you don't pay your tax or you pay an insufficient amount of tax through withholding, you might also have to pay estimated taxes. If you didn't pay enough tax throughout the year, either through withholding or by making estimated tax payments, you may have to pay a penalty for underpayment of estimated tax."


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).


"Generally, most taxpayers will avoid this penalty if they either owe less than $1,000 in tax after subtracting their withholding and estimated tax payments, or if they paid at least 90% of the tax for the current year or 100% of the tax shown on the return for the prior year, whichever is smaller."


To see if you can reduce the amount of penalty you are being charged, go to

  • Wages & Income
  • Other Tax Situations
  • Underpayment penalties


@gary boyd

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
message box icon

Ready to start your taxes?

Hand off your taxes, get expert help, or do it yourself.

See Pricing
Manage cookies