Application of Payments to Underpayment Penalty Calculation

[CKliger]

I am noting (or at least I think this is happening) that a refund applied from a prior year is not included in this calculation, when it would seem that money was in the possession of the IRS from the filing deadline, and should therefore "count" as a payment.

The amount is properly entered on the Tax Payment worksheet.

Do you need to do something to trigger this?

[Critter]

If you filed a timely 2018 return and applied some of the 2018 refund to the 2019 return it should be listed as or included with  the first quarter estimated payment. 

Make sure that applied refund is correctly entered in the program ...     

- Federal Taxes   (Personal for Home & Business)

- Deductions & Credits

- I'll choose what I work on

- under Estimates and Other Taxes Paid

- Other Income Taxes – click Start or Update

- under 2018 Refund Applied to 2019

- click Start across from what refund you applied to 2019 taxes

[dmertz]

As Critter implies, an amount of overpayment applied to the following year's taxes is treated by the IRS as part of your first-quarter estimated tax payment.  In TurboTax it's recorded explicitly as an applied overpayment separate from any actual estimated tax payments you make but is included in the total on 2019 Schedule 3 line 8.

[CKliger]

May have been a fluke. The numbers were transferred from the 2018 return, but they didn't appear. I restarted the program and they populated.

No idea, but the calculation is correct now.

[CKliger]

Sorry. They appeared in the payments worksheet, but did not appear in the Underpayment worksheet. They do now, but I didn't do anything other than close out and restart the program.

[Critter]

Most likely the 2210 section of the program was not updated yet ... so closing the program and restarting it does the trick.