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geddy3
New Member

Turbo Tax for 2 years in a row has miscalcuated my Ohio underpayment penalty

For two years in a row now, Turbo Tax has miscalculated my underpayment penalty to state of Ohio. This it year (2024) it said I owed no penalty but just received notification from Ohio tax department that I owe $132. Last year (2023) it under-calculated by $61.  What information do you need to:

1. Correct your software so this does not happen in future years.

2. Under the 100% guarantee,will you refund me the amount I had to pay?

 

Thanks.

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2 Replies
ThomasM125
Expert Alumni

Turbo Tax for 2 years in a row has miscalcuated my Ohio underpayment penalty

TurboTax calculates an estimated penalty based on various factors, including your tax from the previous year and your tax withheld and estimated taxes paid in for the current tax year. That estimate can vary from what the state calculates.

 

Assuming your penalty for late payment of tax assessed by the state is accurate, the amount of tax and penalty you owe would be the same even if TurboTax had calculated the correct amount when you filed your tax return. So, I don't believe the TurboTax 100% guaranteed would apply, as you won't pay more tax overall as a result of the estimated tax shortfall.

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geddy3
New Member

Turbo Tax for 2 years in a row has miscalcuated my Ohio underpayment penalty

That answer does not make sense.  How can you claim a 100% calculation guarantee and then say you're only calculating an estimate on the underpayment?  A 100% calculation guarantee means to me you guarantee EVERY calculation.  If that is truly not how Turbo Tax works than I'll be moving my business to another tax app next year.  

 

Thanks

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