Underpayment Penalty

[Dleanos]

Why does it says no underpayment penalty but then when reviewing the tax return the forms underpayment penalty show up at the end of my tax return???

[Vanessa A]

Are there any numbers on the underpayment penalty form?

Look at your form 1040 and see if you see a penalty on line 38.  If you do not, then that means you were subject to the penalty, but TurboTax filled out the form to avoid the underpayment penalty so it is attached to your return. Did you answer it on a previous run through and then picked up again where you left off?

[Dleanos]

There are numbers on the underpayment penalty form. 

There is no amount for line 38. I also subtracted the numbers that it says, to subtract line 33 from 24 and it gave me the amount of $847. I do remember I logged out to finish the rest another day. 

what am I supposed to do?

[Vanessa A]

Nothing.  It sounds like everything is correct.  If you were subject to an underpayment penalty, it can be waived for the following reasons:

• The penalty is less than $1,000
• You paid 90% of your 2024 taxes due
• you paid 100% of your 2023 taxes due

One the the numbers on for underpayment penalty form is likely matching up with one of those other numbers.  This is why you do not see anything on line 38.  Without that form, you would have a penalty on line 38 being calculated. 

[Dleanos]

Oh ok so I don’t have to fill out any other form? It’s okay to submit my tax return as it is? 

[DawnC]

Yes, you can go ahead and file your tax return, as it is, without any penalties.