Transfer 2020-2023 data to completed 2024 tax return to populate Tax History. All files are on the same PC

[rjs]

The Tax History information has to be carried from year to year by transferring information from the previous year each time that you start your tax return for a new year. If you broke the chain by starting a new tax return without transferring from the previous year, there is no way to automatically transfer the information now. But you can fill in the Tax History Report manually in forms mode.

[kent37]

Thank you. 

I asked the question because TurboTax has calculated an underpayment penalty of my 2023 Federal estimated taxes. I think this is because my 2023 data was not found when I downloaded and installed Turbo Tax 2024 Premier.

I selected the option of 110% of my 2023 taxes to calculate my 2024 estimated taxes. I have always used this option and have never been assessed an underpayment penalty for the few times I underpaid my estimated taxes.

Should I override the penalty Turbo Tax calculated prior to filing my 2024 Federal taxes?  

[JotikaT2]

You should not override the penalty calculation, but you can try to annualize your tax to see if that helps reduce the penalty.  Please see this link for guidance.

[VolvoGirl]

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.  Even if you are getting a refund you can still owe a penalty.  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

If you have the desktop program you can switch to Forms Mode (click forms in the upper right (left for Mac)) and open the 2210 form.  If the 2210 doesn't show up in the left column, click on Open Forms at the top of the left column.  Type 2210 in the search box and open the 2210 form.  Check box C if you want to let the IRS calculate it.