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I paid 1500 when I filed my extension by 4/15/2024. I only owe 1078 but turbotax keeps applying the penalty. How do I remove it?

It deletes $50 from my return but I paid all taxes for 2024 ontime
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2 Replies

I paid 1500 when I filed my extension by 4/15/2024. I only owe 1078 but turbotax keeps applying the penalty. How do I remove it?

Did the 1500 show up on your return?  For 2024 Federal Extension payments should be on schedule 3 line 10. And go to 1040 line 31.

 

You can type estimates paid in the search box at the top of your return and click Find and it will give you a link to Jump To the screen where you enter Extension Payments.

 

To enter the amount you paid with an extension (including state extension) go to

Federal Taxes (or Personal Tab for desktop H&B version)

Deductions and Credits

Then scroll way down to Estimates and Other Taxes Paid

Other Income Taxes - Click the Start or Update button

 

Next page second section Payments with Extension

Either Visit All or Click Start or Update by the extension you paid

 

FOR THE PENALTY

If you do not pay in enough tax from withholding and estimates, you may have to pay a penalty for underpayment of estimated tax. The penalty is an Estimated amount. Even if you are getting a refund you can still owe a penalty for not paying in evenly during the year. Generally, most taxpayers will avoid this penalty if they owe less than $1,000 in tax after subtracting their withholdings and credits, or if they paid at least 90% of the tax for the current year, or 100% of the tax shown on the return for the prior year, whichever is smaller. It is included in your tax due or reduces your refund.


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 tab or Personal (for Home & Business Desktop)

Other Tax Situations

Additional Tax Payments

Underpayment Penalties - Click the Start or update button

 

I paid 1500 when I filed my extension by 4/15/2024. I only owe 1078 but turbotax keeps applying the penalty. How do I remove it?

the only penalty Turbotax computes regarding tax payments is the underpayment if estimated taxes on form 2210. all your payments can be timely but must also be sufficient to avoid this penalty.

 

in your situation timely payments must meet either of these safe harbors to avoid this penalty

1) 90% of current year tax 0r

2) 100% of last year's tax. 110% if your 2023 AGI was $150K or more  

 

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