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TurboTax incorrectly estimated a penalty for my daughter's return (we did not use TT last year, so it didn't know her tax liability was zero). How do we fix this?

We filed her return, but have not yet paid. I tried creating an amended return, but TT says it doesn't see any changes: it now shows $0 penalty, but the return we filed shows a ~$150 penalty.
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2 Replies
MonikaK1
Expert Alumni

TurboTax incorrectly estimated a penalty for my daughter's return (we did not use TT last year, so it didn't know her tax liability was zero). How do we fix this?

If your daughter's return incorrectly shows that an underpayment penalty is due because incorrect information was input about her prior year's return, the IRS will normally also calculate the penalty based on their records. You should not attempt to amend a return while the return is awaiting processing.

 

If you filed the return, it shows tax due, and there was no payment scheduled through TurboTax, you can pay IRS online.

 

If you receive a penalty notice from the IRS and it appears incorrect, follow the instructions in the notice or at this webpage to dispute the penalty.

 

 

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TurboTax incorrectly estimated a penalty for my daughter's return (we did not use TT last year, so it didn't know her tax liability was zero). How do we fix this?

Thanks for the advice not to try to amend the return while it is being processed.

There is tax due, and we had printed out a payment voucher, planning to mail in a check, but the amount (we believe) is now incorrect. It seems like a bad idea to send in the voucher with a check that doesn't match; it would be a nuisance to re-do the entire return just to get a 1040-V with the correct amount. I just found I could download a blank 1040-V from irs.gov and fill in the new amount.

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