about Line 38 in form 1040

4 replies
60 views

Dear Sir,

I finished form 1040-SR using TurboTax. Line 38 is showing $89. and added it to Line 37. I was selected NO for estimate tax penalty. Why it still shows?

Thank you.

Victor Zhan

BillM223

Level 15

Where did you select "no" for the estimated tax penalty? What part of the interview were you in? What was the heading of the screen where you were asked this question?

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1912

Level 2

I have similar question about line 38 penalty. We have variable income that is not resolved until working out 2022 tax form. However, I always am sure to withhold as much tax as was due the previous year (2021). This should exempt me from paying this penalty. Yet TT wants to add this penalty to our taxes due. Can you help?

VolvoGirl

Level 15

You might be able to eliminate it or at least reduce it. You can go to Federal Taxes tab or Personal tab, under Other Tax Situations and select Start by the Underpayment Penalties. You will answer a series of questions that may reduce or eliminate the penalty. Or you can elect to have the IRS figure the penalty for you. It's form 2210.

It's under

Federal or Personal (for Home & Business Desktop)

Other Tax Situations

Additional Tax Payments

Underpayment Penalties - Click the Start or update button

If you have the desktop program you can switch to Forms Mode (click forms in the upper right (left for Mac)) and open the 2210 form. If the 2210 doesn't show up in the left column, click on Open Forms at the top of the left column. Type 2210 in the search box and open the 2210 form. Check box C to let the IRS calculate it.

Form 2210 https://www.irs.gov/pub/irs-pdf/f2210.pdf

Instructions https://www.irs.gov/pub/irs-pdf/i2210.pdf