Why is turbotax assessing a Penality / Interest on my 2019 return?
You'll need to sign in or create an account to connect with an expert.
TurboTax does not assess penalties; the IRS and state tax authorities assess penalties. Are you referring to an underpayment penalty on your balance due?
According to the IRS:
Generally, most taxpayers will avoid this penalty if they either owe less than $1,000 in tax after subtracting their withholding and refundable credits, or if they paid withholding and estimated tax of at least 90% of the tax for the current year or 100% of the tax shown on the return for the prior year, whichever is smaller.
the IRS does not assess interest on an underpayment of tax penalty unless the entire balance due, if any, isn't paid by 7/15/2020. if you had a stare return, that might have been due at an earlier date. Not all states extended the due date to 7/15. so now if you owe you have penalties and interest on the late payment.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
jmpeacock-sbcglo
New Member
mbdowty
Level 1
jeangail
New Member
mpiseter
New Member
TomG6
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.