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Does turbo tax automatically add underpayment penalties to my amount due? Or do I need to go to the irs website to pay them?

 
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4 Replies

Does turbo tax automatically add underpayment penalties to my amount due? Or do I need to go to the irs website to pay them?

TurboTax will enter an estimated tax penalty on the Form 1040 Line 38 if a penalty is required.  The penalty will be included in the taxes owed or it will reduce the amount of a tax refund.

TomK2023
Employee Tax Expert

Does turbo tax automatically add underpayment penalties to my amount due? Or do I need to go to the irs website to pay them?

If you are responsible for an underpayment penalty, the program will automatically compute and add that amount to your return, and reduce any refund or increase your tax liability as applicable.  

 

Enter Underpayment Penalty here.

  1. Open your return (if not already open).
  2. Enter "underpayment penalty"  in the Search box.
  3. Click on "Jump to underpayment penalty" link.

 

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Does turbo tax automatically add underpayment penalties to my amount due? Or do I need to go to the irs website to pay them?

TurboTax added a $456 Tax Penalty to my 2024 Taxes on Line 38. The underpayment amount was $1000, so the total I owe is $1456. This year, I used both TurboTax and FreeTax, as a comparison. FreeTax computed No tax penalty. So I think I'll file with them. I paid $63,000 of taxes in calendar year 2024, so my underpayment was very minor. Seems like a steep tax penalty that TurboTax calculates. 50% of payment due.

Does turbo tax automatically add underpayment penalties to my amount due? Or do I need to go to the irs website to pay them?

@pablokent   If you get a penalty on 1040 line 38, 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.


How to add form 2210 for Underpayment Penalty
https://ttlc.intuit.com/community/tax-payments/help/how-do-i-add-form-2210/00/25703

 

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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