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If TurboTax states I have an extra tax bill but I'm still showing a refund, does that mean the extra tax bill is already accounted for? Or do I pay that seperately?

 
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3 Replies
DawnC
Expert Alumni

If TurboTax states I have an extra tax bill but I'm still showing a refund, does that mean the extra tax bill is already accounted for? Or do I pay that seperately?

If you are showing a refund, it includes any taxes for anything you have already entered.   But to confirm, can you provide a few more details, such as what screen or entry did you make before you saw the message about ''an extra tax bill''?    

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If TurboTax states I have an extra tax bill but I'm still showing a refund, does that mean the extra tax bill is already accounted for? Or do I pay that seperately?

Sure thing! I entered in a 1099-R. It is referring to the 10% penalty for retirement withdrawal.

If TurboTax states I have an extra tax bill but I'm still showing a refund, does that mean the extra tax bill is already accounted for? Or do I pay that seperately?

Yes you can still have a refund.  The 10% Early Withdrawal Penalty is included in your tax return and refund.  All your withholding was enough to cover it.   Or you might have an exception to the penalty.  You don't need to pay it separately.

The 10% Early Withdrawal Penalty is on Schedule 2 line 8 which goes to 1040 line 23.  Then you get credit for all the withholding taken out on 1040 line 25b.

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