Estimated Penalty?

Forum|Forum|6 years ago
March 8, 2020
9 replies
23 views

My estimated summary shows a $67 penalty. I am not aware of anything I have done to incur it - what are the sources / causes of penalties on a tax return that is not past due?

TurboTax Premier Online

DavidD66

Level 15

If your return is showing a penalty, it would be for "Underpayment of Estimated Tax", or in other words, not paying enough via payroll withholding or estimated payments throughout the year.

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VolvoGirl

Level 15

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

If you have the desktop program you can switch to Forms Mode (click forms in the upper right (left for Mac)) and open the 2210 form.

ps....I had a refund once and still had a penalty for not paying in evenly during the year.

stlucia95

Level 4

We are getting penalized for cashing in Bonds for tuition for my son in college. These were bought before 1989. so they are not tax exempt. so instead of asking TT is ratting us out as if we are tax evaders and assessing a penalty they don't have the power to enforce. I may not have this tax situation int he future either so it needs to be eliminated.

If the government is getting all their money back at the end of the year why file quarterly estimated returns on one time tax events.

I didn't see this before I filed so now I want to eliminate it if possible and file an amended return.

Penalty2020

Level 2

I am showing a $140 penalty. Should I have more MD state tax taken out in my pension?

KatrinaB48

Level 15

Yes, I would advise having more state tax withheld from your pension. This is a common problem that taxpayers have after retirement since there is no money being withheld form an employer.

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