Well...perhaps you do owe a penalty.
A Penalty can occur even if you get a Refund.
This usually occurs if you make uneven quarterly estimated payments, or perhaps received a large distribution late in the year where you made just one end-of-year estimated payment.
________
Sometimes, if you are in this situation, you may be able to limit the penalty/interest by going thru the Underpayment penalty calculations on the "Other Tax Situations" page in the software, to prepare an Annualized Income tax form (2210/2210AI), that defines exactly when you received all your income, and exactly when you made payments/withholding etc thru the year....divided up by quarter.
It is a pain to do that though, (having done that once or twice) and I won't bother myself unless the penalty/interest is over ~$50.
Well...perhaps you do owe a penalty.
A Penalty can occur even if you get a Refund.
This usually occurs if you make uneven quarterly estimated payments, or perhaps received a large distribution late in the year where you made just one end-of-year estimated payment.
________
Sometimes, if you are in this situation, you may be able to limit the penalty/interest by going thru the Underpayment penalty calculations on the "Other Tax Situations" page in the software, to prepare an Annualized Income tax form (2210/2210AI), that defines exactly when you received all your income, and exactly when you made payments/withholding etc thru the year....divided up by quarter.
It is a pain to do that though, (having done that once or twice) and I won't bother myself unless the penalty/interest is over ~$50.
well, i enter the same information in plausible but slightly different ways and the penalty changes by $1 to a few hundred dollars, so, no, in fact. I don't.
we can tell whether you owe a penalty or not. if you don't trust Turbotax's calculation you can check box C on form 2210 to let the IRS compute the penalty, if any.