I filed my 2023 taxes with Turbo Tax and just now I noticed a $126 Penalty/Interest on my return. This is showing on line 38 and says to see instructions. But I am not able to see anything. How do I find out what that fee is and is it possible to reverse it?
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Go to this IRS website for the Form 1040 Line 38 regarding the Estimated Tax Penalty - https://www.irs.gov/pub/irs-pdf/i1040gi.pdf#page=62
Line 38 is your estimated tax penalty. This penalty could be assessed if you didn't have enough tax withheld and/or didn't make adequate estimated tax payments during the year. This TurboTax article will give some more details on the situation and help you figure out what to do next.
once you encounter a large amount on Line 38, you quickly (attempt to) become an expert on underwithholding and how to reduce or eliminate it.
Otherwise, to you, it is not a large amount.
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