turbo tax calculated my underpayment penalty wrong

[adcadc123]

Hi 

Turbo tax calculated a penalty for underpaying my 2023 tax, but I paid more in 2023 than 100% of my total tax in 2022.  According to the law, I should not have to pay a penalty.  There seems to no way to change this in turbo tax online without starting my taxes over again.  How can I fix this? 

[mesquitebean]

@ adcadc123 

I'm a fellow user, not a tax person.   It also depends on when you made the payments in 2023; it's not based solely on the total amount paid.   Did you happen to underpay any quarter?

Someone familiar with the Online product should be able to tell you how to get back in your return and go to that section.  TurboTax tax experts will also be joining this forum at 5AM Pacific, but they will likely want to know the same question I asked.

[adcadc123]

I paid the same amount of tax every quarter.  This shouldn't matter because I paid over 100% of the tax I paid in 2022.  In  previous versionsTurbo tax it seemed much easier to go back and make changes.  This year this has seemed to change. 

[adcadc123]

At a minimum, I want to change my option to have the IRS calculate my penalty, but there is no obvious way to change this.   The penalty is small, but the more significant issue is if Turbo Tax is missing this, what else are they missing? I am saying this as someone who has used TurboTax for many years.

[mesquitebean]

@JohnB5677    Are you able to assist here, please.  Thanks!

[crash345u]

If you had withholdings like on a W2, it was deemed spread out over the year (vs making estimated payments) so in that case, timing should not matter.

Maybe this TT article will help >> TT Article 

If your AGI last year was >$150K you needed to w/h 110% so maybe that's the issue?

I agree, this year TT changed the interface so its much clunkier to navigate. Its almost like they feel the need to change it every year just to claim its been "refreshed"  or somehow improved.  I found myself clicking around a lot more to do the same things I did in the past. My advice to them would be leave alone what worked and maybe just modify the background colors a little each year if it floats their boat.

[JohnB5677 · Accepted solution]

Yes, I can help you have the IRS calculate the penalty if there is one.

1. Select Tax Tools
2. On the drop-down select Tools
3. There will be 3 green boxes
4. Select Topics Search
5. Type the form number or topic.
6. Continue through the questions. 
7. The last question is Let the IRS Bill Me Later 

If you've covered all of your basis for taxes in 2023, there is one other criteria that has not been mentioned.

That is your total income.

You must pay the lesser of 110% of last year's tax or 90% of this year's tax if your adjusted gross income (AGI) for last year exceeded $150,000.

I'm not sure what is going on, but I do have a way to help.

You can share your return with a specialist.

The return will be "sanitized", meaning all names, social security numbers and personal references are removed.

We will then be able to determine the source of the issue.

If you agree, please follow these steps:

1. Log into your TurboTax account
2. Go to Tax Tools
3. Then select Tools
4. On the pop-up screen select Share my file with an agent
5. This will generate a message that a diagnostic file gets sanitized and transmitted to us.
6. Please provide the Token number in a reply to this post.
7. Include @JohnB5677 in your reply so that I get a notification.

[adcadc123]

John

Thanks for the explanation.  I did not know about that it is 110% of your 2022 taxes if your AGI is greater 150K.

I am now in that range.