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Returning Member
posted Oct 31, 2024 1:56:51 PM

Penalties

I thought that Turbo Tax told me that since I retired in 2023, I did not owe penalties. I filed late (but several weeks before the Oct. 15 deadline). IRS sent me a letter with large penalties on it due to underpayment of tax due on April 15. Is this correct? Or are penalties truly waived for retirement years? Math correct.

Thank You,

Vincent

0 2 3886
2 Replies
Level 15
Oct 31, 2024 2:00:13 PM

Penalties for underpayment of taxes are not waived for anyone, regardless of their retirement status.

Level 15
Oct 31, 2024 2:03:14 PM

No.  I don't know what you heard but being retired does  not avoid any penalties.  If you have a tax due the payment was due on April 15  even if you filed the return late.  You probably didn't owe any early withdrawal penalty if you took out a IRA or 401K and were over 59 1/2.  That's the only penalty I can think of for being retired.