If I filed extensions on time via TurboTax and paid taxes owed on time, how do I prevent TurboTax now applying late payment penalties?

[rpovlitz1040]

Trying to finish filing 2019 taxes

[xmasbaby0]

TurboTax does not impose late penalties.  If you are late or underpaid, the IRS might bill you for interest or penalties later.

When you requested your extension you were supposed to pay your estimated tax due.  Did you enter the payment you made into your tax return?  Go to Federal>Deductions and Credits>Estimates and Other Taxes Paid>Other Income Taxes  T

[VolvoGirl · Accepted solution]

Did you enter the extension payment?  If your extension payment did not automatically show up on 1040 Schedule 3 line 10 which goes to 1040 line 18d you need to enter it.  So make sure it's not already there before you enter it!

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 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

Then did Turbo Tax put an amount on line 24 for Ann underpayment penalty?  If you do not pay enough tax, you may have to pay a penalty for underpayment of estimated tax. 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.

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.

It's under

Federal or Personal (for Home & Business Desktop)

Other Tax Situations

Additional Tax Payments

Underpayment Penalties - Click the Start or update button

If you have the desktop program you can switch to Forms Mode (click forms in the upper right (left for Mac)) and open the 2210 form.  If the 2210 doesn't show up in the left column, click on Open Forms at the top of the left column.  Type 2210 in the search box and open the 2210 form.  Check box C to let the IRS calculate it.

[rpovlitz1040]

Appreciate your reading and replying to this a couple weeks into September.  Good of you to reach out and try to help. 

Am being shown a penalty tax by TurboTax On The Web on 1040 line 24. 

Maybe it's not a late penalty, but it's a penalty, it is being computed by TurboTax, I did pay estimated amounts on time and correctly, so the penalty showing up is quite vexing.  

Am going to slog thru every eventuality possible both from this answer of yours, from other answer in this post, from every path TurboTax on Web offers to go down and attempt, and see if can get this ... imperfect program to cooperate.  

Thanks for your help and answer: does help, will try.  You rock, thanks

[Critter-3]

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.