1040-SR, Line24, "Estimated tax penalty" of $54

[RoyYoung414]

Why is there an "Estimated Tax Penalty" of $54 on Line 24 of my 1040-SR form? This is added to the "Amount you owe" on Line 23, and creates a larger sum for the amount shown as owed in 2019 Federal Taxes. I am not late yet filing.

[JulieS · Accepted solution]

An estimated tax penalty is a penalty for failing to pay enough tax during the year.
 
Our tax system is considered a pay as you go system. If you don't have enough tax withheld from your job, your pension or other income, you are expected to make estimated tax payments during the year. The penalty is for not doing that.
 
Many people assume that as long as they pay by the filing deadline, it is on time, but the IRS expects about 1/4 of your taxes be paid during each quarter on the year.

You may be able to get part, or all your penalty waived by reviewing the estimated tax penalty section in TurboTax. 

    1. Log in and Continue your return.
    2. Select Other Tax Situations at the top center.
    3. Scroll down to Additional Tax Payments, click Show more on the right.
    4. Select Underpayment Penalties.
    5. Answer the questions in this section based on your situation.
 

Please note for 2020, the tax filing deadline is July 15, 2020.

Click here for more information.

 [Edited 03/24/20 | 10:57 am PST]

[lacayromy__1958]

I do now understand the penalty and interest. Thank you. It's about insufficient income tax withheld or accumulated in 1099-R.

[LeonardS]

Yes, you are correct, you may find this information useful.

"Generally, most taxpayers will avoid this penalty if they either owe less than $1,000 in tax after subtracting their withholding and refundable credits, or if they paid withholding and estimated tax of 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".  Ref: Topic No. 306 Penalty for Underpayment of Estimated Tax

[NWho]

1040-sr form is for the ederly and helps with taxes! Why are you not using it?

[fanfare]

The only way 1040-SR helps you is if your eyeglasses prescription needs updating.

Ironically, all the other forms you have to work with are unchanged.

[VolvoGirl]

@NWho   Who are you addressing?  Turbo Tax does use the 1040SR if you are 65 or older.  The original question at the top said they have the 1040SR.  What is your question about it?  The 1040SR is the same as the regular 1040, just larger type.  If you have the Desktop program you can force the SR or regular 1040.

[VolvoGirl]

The 1040SR is the same as the regular 1040 just larger type. Same line numbers. You automatically get the SR if you are 65.  You can compare them,
1040 https://www.irs.gov/pub/irs-pdf/f1040.pdf
1040SR https://www.irs.gov/pub/irs-pdf/f1040s.pdf

If you use the Desktop program you can switch to forms and the Info Wks part II has a selection for 1040 or 1040SR.

[FMC2400]

I thought the Estimated tax penalty was waived for this year.  If not, how was the penalty calculated?

[BillM223]

@FMC2400

Any waiver was for 2018:

https://www.irs.gov/newsroom/irs-automatically-waives-estimated-tax-penalty-for-eligible-2018-tax-fi...

There are some waivers still in force, for special cases: https://www.irs.gov/taxtopics/tc306