Open TurboTax

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
Your taxes, your way. Get expert help or do it yourself. >> Get started
Close icon
Do you have a TurboTax Online account?

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

cancel
Showing results for 
Search instead for 
Did you mean: 
CKliger
Returning Member

Application of Payments to Underpayment Penalty Calculation

I am noting (or at least I think this is happening) that a refund applied from a prior year is not included in this calculation, when it would seem that money was in the possession of the IRS from the filing deadline, and should therefore "count" as a payment.

 

The amount is properly entered on the Tax Payment worksheet.

 

Do you need to do something to trigger this?

5 Replies
Critter
Level 15

Application of Payments to Underpayment Penalty Calculation

If you filed a timely 2018 return and applied some of the 2018 refund to the 2019 return it should be listed as or included with  the first quarter estimated payment. 

 

Make sure that applied refund is correctly entered in the program ...     

- Federal Taxes   (Personal for Home & Business)

- Deductions & Credits

- I'll choose what I work on

- under Estimates and Other Taxes Paid

- Other Income Taxes – click Start or Update

- under 2018 Refund Applied to 2019

- click Start across from what refund you applied to 2019 taxes

dmertz
Level 15

Application of Payments to Underpayment Penalty Calculation

As Critter implies, an amount of overpayment applied to the following year's taxes is treated by the IRS as part of your first-quarter estimated tax payment.  In TurboTax it's recorded explicitly as an applied overpayment separate from any actual estimated tax payments you make but is included in the total on 2019 Schedule 3 line 8.

CKliger
Returning Member

Application of Payments to Underpayment Penalty Calculation

May have been a fluke. The numbers were transferred from the 2018 return, but they didn't appear. I restarted the program and they populated.

 

No idea, but the calculation is correct now.

CKliger
Returning Member

Application of Payments to Underpayment Penalty Calculation

Sorry. They appeared in the payments worksheet, but did not appear in the Underpayment worksheet. They do now, but I didn't do anything other than close out and restart the program.

Critter
Level 15

Application of Payments to Underpayment Penalty Calculation

Most likely the 2210 section of the program was not updated yet ... so closing the program and restarting it does the trick. 

About Community

Learn about taxes, budgeting, saving, borrowing, reducing debt, investing, and planning for retirement.

3.48m
Members

2.6m
Discussions

Manage cookies
v