Additional Taxes Paid Directly to the IRS Website (not Estimated Taxes)

[todi111]

I had taxable income in 2024 from IRA Distributions.  This was not related to my job, therefore, no taxes were withheld by my employer.  The day after the distribution from the IRA (taxable event), I went to the IRS website and payed the taxes directly to the IRS so i would not get hit with an underpayment penalty at the end of the year.

Where do i enter in Turbotax the additional tax payments that i made directly on the IRS website?  If i put them in the "Estimated or Other Taxes Paid" section of Turbotax (which i have tried), it says that i have an underpayment penalty...which is incorrect.  Additionally, when all is said and done, i will be getting a refund from the IRS since i actually overpaid taxes in 2024. 

Please let me know how to properly enter the additional taxes that i paid directly to the IRS website so that Turbotax does not apply an underpayment penalty based on they way it handles estimated taxes (quarterly tax payments)?

Thanks,

Todd

[DianeW777]

It depends. TurboTax is likely needing to see the annualized method portion of Form 2210 to show taxes were paid when due.  The steps are printed and the link will also show you how to get this started.

• How do I add Form 2210?

1. Open your TurboTax return:
2. Start with 'Other Tax Situations' then select 'Underpayment penalties' > Start or Update
3. Continue to follow the prompts to enter your income and payments for the annualized method.

Have your income and payments ready for entry.  This shows the IRS when money was received and when the tax was due, as well as the estimated tax you made at the appropriate time frame. See the images below.

[todi111]

Using the annualized method on Form 2210 worked.  Thank you...the Federal Underpayment penalty is gone!

What about the state of Georgia and underpayment penalty?  For some reason, I am still getting a small underpayment penalty on Georgia Form 500 UET.  How can I resolve that issue?  I should not have to pay an underpayment penalty in Georgia either since I paid additional taxes immediately on the State of Georgia Dept of Revenue website?

Thanks,

Todd

[DianeW777]

When you are in the Georgia (GA) return, review the annual method for underpayment.  Make sure you have the estimated taxes you paid for GA in the federal section of your return. This link will help you see if there should be relief of any late payment penalties for GA.

• GA Penalty and Interest Rates

State estimated payments are entered in the federal return under Estimates and Other Taxes Paid.