How to split the Balance Due and Penalty/Interest

[kiddkevin01]

Hi, why is Form 1040 line 37 includes line 38. In the instruction of line 37, it says "Subtract line 33 from line 24. This is the amount you owe." and it doesn't say adding line 38, but Turbo tax add line 38 automatically, which is not matching the instruction written Form 1040 line 37. Can you correct that?

Lastly, I would like to pay the Estimated tax penalty tomorrow since I don't want it to keep accumulating interest. And then, I will pay the amount I owe since I need to prepare the funds until 4/14/2025. How can I do that in Turbotax as shown in the first attached screenshot. As of the payment, should I just go https://directpay.irs.gov/ to pay Estimated tax penalty tomorrow by selecting these info as shown in the second attached screenshot? And then pay the amount I owe at 4/14/2025 by selecting the same info as shown in the second attached screenshot?

[VolvoGirl]

Turbo Tax is doing it right.   See IRS 1040 instructions page 61 bottom of middle column, figuring the penalty
https://www.irs.gov/pub/irs-pdf/i1040gi.pdf

It says….
Enter any penalty on line 38. Add the
penalty to any tax due and enter the total
on line 37.

However, if you have an overpayment on line 34, subtract the penalty
from the amount you would otherwise
enter on line 35a or line 36. Lines 35a,
36, and 38 must equal line 34.

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

[VolvoGirl]

Then to pay the IRS, yes the second one Balance Due for 2024.  It doesn't need to be broken out for tax due and penalty.   Any payments you make are towards the Balance Due including the penalty on line 38.  Not the first one unless you are requesting to set up a payment plan. 

[kiddkevin01]

Thanks for the reply! I appreciate it.

The reason I must broken out is because I have a huge amount owed to IRS that I need some time to prepare for the funds, while the underpayment penalty is much less and I don’t want it to keep acclimating its interest so I want to pay the penalty now. What should I choose in the first screenshot I attached in order to do separate payment at different time?