TurboTax Issues

Forum|Forum|5 years ago
August 9, 2020
1 reply
5 views

Each year I have to pay more tax when I file (no refund) which is OK with me, as long as it’s not so much that the IRS to charges me a penalty. Now I see the IRS has been charging me every year, but TurboTax never informed me, they just paid it silently by adding it to my tax bill. Why does TurboTax do this?

Other

xmasbaby0

Level 15

Why do you not look at your tax return before you file it? You are supposed to LOOK at your do-it-yourself tax return before you file it. If you underpaid your taxes during the year, the software calculates the underpayment penalty and adds it to the Form 1040.

Next time you prepare a tax return, before you just file it, look it over.

You can do that-

PREVIEW 1040

https://ttlc.intuit.com/questions/1901539-how-do-i-preview-my-turbotax-online-return-before-filing

Click on Tax Tools on the left side of the screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.

https://ttlc.intuit.com/community/printing/help/can-i-print-a-copy-of-my-turbotax-online-return-before-i-file-it/00/26244

Decide if you want to increase your withholding amount and adjust your W-4 accordingly.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Seahawk190Author

Level 4

I see the IRS has been charging me every year, but TurboTax never informed me, they just paid it silently by adding it to my tax bill. Why does TurboTax do this?

VolvoGirl

Level 15

Charging you for what? The estimated underpayment penalty on 1040 line 24?

If you do not pay enough tax, you may have to pay a penalty for underpayment of estimated tax. Even if you are getting a refund you can still owe a penalty for not paying in evenly during the year. Generally, most taxpayers will avoid this penalty if they owe less than $1,000 in tax after subtracting their withholdings and credits, or if they paid at least 90% of the tax for the current year, or 100% of the tax shown on the return for the prior year, whichever is smaller. It is included in your tax due or reduces your 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 to let the IRS calculate it.