Penalty and interest

Hi There:

The time to file a tax return was extended. However, and unfortunately such extension does not relieve the burden of timely paying taxes.  Long story short - failure to timely pay tax due is not affected by disasters. 

The only penalty on federal tax return would be on your Form 1040 Line 38 which would only be on the return if you did not pay enough federal taxes in 2022.  It is a Estimated tax penalty for underpayment of federal taxes in 2022.  It has nothing to do with if you paid the taxes owed after the due date of the tax return.

TurboTax does not show any type of interest penalty on a tax return.  That can only be assessed by the IRS or a State after the tax returns has been filed.  Then you would receive a bill in the mail from the IRS or State.

The prior answer is a little wrong.  For CA both the tax return and tax due payment are extended.

Do you have a penalty on 1040 line 38?  it's not for filing or paying late.  It doesn't have to do with last year's tax return or not paying estimates for this year.  The penalty is an "estimated" amount.    It's a penalty if you owe too much or for not paying in enough withholding during the year or not paying in evenly.  It's very common and normal and expected for the IRS or state to bill you for more or send you a 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