Calculation error in amount owed.

Forum|Forum|3 years ago
March 28, 2023
2 replies
3 views

See image below, line 37 should be $3,971 not $4,030.

Line 24 minus Line 33.

12,115 - 8,144 = $3,971

How do I get Turbotax to recalculate and come up with the right number? I plugged my numbers into Freetax and it calculated it correctly.

Using Desktop version.

TurboTax Business Windows

DoninGA

Level 15

You did not add in the Underpayment Penalty shown on Line 38

$3,971 + $59 = $4,030

moonche1

Level 2

The difference is on line 38 the estimated tax penalty. Turbo tax automatically added that in to come up with the amount of tax due. If you owe more than a certain amount of taxes, you will incur a penalty. Since Turbo tax added it automatically there might be a way to delete it, but the IRS will probably charge it to you anyway. One way to avoid this is to pay estimated taxes or change your withholding to a higher percentage. I ran into this situation a few years ago.

taxman2022-bAuthor

Level 2

Ah, thanks for the clarification. Ended up owing that much due to money from an inherited IRA, not from not having too little money deducted from payroll. Kind've weird that there is 'Penalty' for that, since I couldn't anticipate it coming.

Thanks again.