Estimated tax penalty line 38

[gracie3412]

I'm using turbox desktop and have used it for years.  For 2024, TT has not provided a penalty in line 38 of 1040. I am certain a penalty is required but just not sure of the amount.  I know I can manually add this amount to 1040 but I would like to figure out why TT for 2024 has not done a calculation.  I do not have on my desktop 2023 TT tax forms because I lost this data.  Could this be the reason why TT 2024 is not providing an entry on line 38? As FYI, turbotax 2023 calculated too much on line 38 and I received a refund from the IRS.  Thank you

[KeshaH]

There are a couple of reasons that could cause TurboTax to not calculate the penalty:

1. You don't have to pay the penalty. If you've already made your required annual payment for the year, you won't have a penalty. Your required annual payment for 2024 is 90% of your 2024 tax or 100%* of your 2023 tax. 

2. You entered zero when asked for your 2023 tax liability. If you entered zero on the screen that asked for your 2023 tax liability, TurboTax wouldn't calculate a credit. This is because if your tax liability was zero, your required annual payment would be zero. 

3. You clicked the button to let the IRS calculate your penalty. 

You can review your Form 2210 before your file to understand why your underpayment penalty is not calculating.

*110% of your 2023 tax liability if your 2024 income is $150,000 or more

[dmertz]

If you were unable to transfer in your 2023 TurboTax file to begin your 2024 tax return, you'll need to enter your 2023 tax liability to avoid TurboTax treating that as zero and causing TurboTax to apply the safe-harbor that depends on that.  Visit the Underpayment Penalties section under Other Tax Situations.

There is also an option in TurboTax to tell TurboTax that you do not what TurboTax to calculate the penalty and to let the IRS bill for the penalty, so make sure that you have not selected that..