Underpayment Penalty Waiver, Mass. State

[user17720350838]

I have a small underpayment penalty for my Mass. state return. TurboTax says I may be able to eliminate penalty by filing a waiver as I retired in 2024. It tells me how to file the waiver but do I pay the penalty with my tax return and hope for a credit  or hold the penalty amount back?

Thank you

[LaShaunA3 · Accepted solution]

Pay the penalty now with your return, then submit the waiver. Massachusetts can remove the penalty if you qualify, but if you don’t pay it, you could get additional interest or notices. 

If approved, the state will refund or adjust it later. 

See Massachusetts guidance here.