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In my Fed Tax filed 2022, TurboTax added $390 as penalty for not paying enough estimated tax without giving me any option. IRS has sent me a refund check of $390.

Tubotax has a flaw for adding penalty as it happened to me in my CA tax which was not required as I had refund in previous year.
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2 Replies

In my Fed Tax filed 2022, TurboTax added $390 as penalty for not paying enough estimated tax without giving me any option. IRS has sent me a refund check of $390.

Yes it was just an estimate on line 38.  It's common for the IRS to  reduce the penalty or send you a bill for more. Did you notice it before you filed?  You can try to reduce or eliminate it or leave it off and let the IRS figure it out if any.  

 

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.

 

 

In my Fed Tax filed 2022, TurboTax added $390 as penalty for not paying enough estimated tax without giving me any option. IRS has sent me a refund check of $390.

Turbotax applies the rules and formulas specified by the IRS; unfortunately, the rules and formulas provided by the IRS for taxpayers to use do not always match what the IRS actually does with your tax return.  As a result, calculated penalties are just estimates, and your actual penalty may be higher or lower.  For this reason, I always recommend to decline turbotax's attempt to add a penalty and wait and see if the IRS will bill you.  Getting a bill also gives you the chance to appeal. 

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