TurboTax generated estimated penalty/interest on Form 1040-SR

[HGE747]

After executing e-file 2024 taxes I discovered TurboTax generated an interest penalty/charge that was deducted off my refund. While preparing my taxes the software gave me no indication that there was an issue with my quarterly estimated tax distributions. A majority of my taxable income came from the last quarter of 2024. How will the IRS notify me of the finalized amount of penalty/interest charge? Will my projected refund change? I would like to know more details of this charge. I’m not even sure there should be one. Thanks

[DavidD66 · Accepted solution]

The IRS will calculate your underpayment of estimated tax, if there is one.  Your refund will be adjusted to reflect any change to the amount calculated by TurboTax.   If the IRS makes a change, you should receive a letter from the IRS shortly after you receive your refund, if you are receiving it via bank deposit.  If you are receiving it by check, you may receive the letter a few days before, or a few days after the check arrives.

[VolvoGirl]

Sounds like you already filed?  If it rejects or for the future.....

If you get a penalty on 1040 line 38, 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.

How to add form 2210 for Underpayment Penalty
https://ttlc.intuit.com/community/tax-payments/help/how-do-i-add-form-2210/00/25703

It's under

Federal or Personal (for Home & Business Desktop)

Other Tax Situations

Additional Tax Payments

Underpayment Penalties - Click the Start or update button