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Mills3
New Member

Balance Due With Penalty/Interest for Return in Texas 2020

Filing my taxes and was wondering why is there a penalty/interest if the due date for Texas for 2020 isn't until 6/15/2021?

2 Replies
Mike9241
Level 15

Balance Due With Penalty/Interest for Return in Texas 2020

if it's on line 38 the penalty is due to not paying in enough taxes during the year to equal the lower of 90% of 2020 taxes or 100% of 2019 taxes (110% if your 2019 adjusted gross income was over $150K)

VolvoGirl
Level 15

Balance Due With Penalty/Interest for Return in Texas 2020

That is not for filing or paying late.

If you do not pay in enough tax from withholding and estimates, you may have to pay a penalty for underpayment of estimated tax. Even if you are getting a refund you can still owe a penalty for not paying in evenly during the year. Generally, most taxpayers will avoid this penalty if they owe less than $1,000 in tax after subtracting their withholdings and credits, 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. It is included in your tax due or reduces your refund.


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

 

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