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Level 1
posted Apr 13, 2023 10:01:07 AM

I paid over 110% of last years tax liability, but turbotax tool still assess penalty for not paying estimated payments. How do I remove this penalty in turbotax tool?

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2 Replies
Expert Alumni
Apr 13, 2023 1:04:52 PM

 

You'll have to pay an underpayment penalty for 2022 if you owe $1,000 or more in taxes (after withholding) and:

  • Your taxes withheld don't cover at least 90% of what you owe for 2022, or
  • Your taxes withheld aren't at least 100% of what you owed for your 2021 taxes, if your adjusted gross income (AGI) is up to $150,000, or
  • Your withholding is 110% if your AGI is more than $150,000. (The AGI amount is $75,000 if you're married filing separately.)

To revisit the penalty section:

  1. Open your return.
  2. Go to Other tax situations
  3. Scroll to Additional Tax Payments.
  4. Select Underpayment penalties.

 

Level 1
Apr 13, 2023 3:46:06 PM

very helpful. thank you