Underpayment Penalty Waiver

[tmmurrell]

I have a friend who was legally disabled in 2018, but now TT is asking if they are retired or disabled in 2024 or 2025. Do they say yes for the waiver for the underpayment of penalty? They paid what they owed for their 2024 when they filed in 2025.

[BillM223]

Is this for his/her federal return or for a state return?

"They paid what they owed for their 2024 when they filed in 2025." Normally, this would have been enough to avoid any question about underpayment of estimated tax. That's why I am curious where you see this (federal or state).

Without knowing any further details, I would say that it is likely that it is OK to answer Yes to being disabled.

[tmmurrell]

BillM,

It is for both, but the question TT asked is in the Federal section.

[BillM223]

OK, if your friend became disabled in 2018 and is still disabled today, then go ahead and answer Yes.

Then before you file, you will want to check the return to make sure that your friend got the appropriate credit for all estimated tax payments, withholdings, and other payments, just in case one is missing and triggering this message.

[tmmurrell]

It’s for the federal return. I did reread it a few times and resolved that because he wasn’t 62 that it won’t apply.