Hello.
For my 2025 taxes I opted to let the IRS determine my penalty for underpayment of taxes. Before I file, how do I go back into the software, and change my preference to allow me to use TurboTax to calculate it? I tried, but nowhere does the software allow me to make the change...
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To change or update the Underpayment penalty -
Click on Federal Taxes (Personal using Home & Business)
Click on Other Tax Situations
Under Additional Tax Payments
On Underpayment penalties, click the start or update button
Yes, I tried that. The screen response was "No underpayment penalties based on entries you don't have a penalty for underpayment of estimated taxes" then it asks me if I want to review estimated taxes. When I was going through the software initially I allowed the IRS to determine my penalty. With how much I now owe, and what I paid total in estimated taxes in 2025, it seems I should be getting some kind of penalty.
@sonzoil On your Form 1040 if Line 38 is blank (empty) and you do owe an Underpayment penalty the IRS will calculate the penalty and send you a bill in the mail.
Is there an amount on Line 38?
No, line 38 is blank.
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