Where can I enter my 2022 balance due payment for federal taxes that I paid in 2023 when I'm in TurboTax (I pay estimated taxes)?

[cellardwellin]

I see the areas where I can add every other type of tax payment, but not this one.  As a result, it thinks I have a late payment and wants the IRS to bill me or me to make the payment before I can move on.

[Mike9241]

see this link. while it's for 2023 it's the same steps for 2022

https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-payments/enter-estimated-tax-payment... 

[VolvoGirl]

Are you filing your 2022 return or 2023?  Almost nothing from 2022 goes on your 2023 tax return.  Especially your 2022 tax due payment.  2022 is done.  And you don't enter your 2022 tax due payment into your 2022 tax return.  That is just the result of filling out your return.  And Turbo Tax wouldn't know you have a late payment.  You are probably seeing the estimated underpayment penalty.

The Underpayment Penalty on your 1040 line 38? That's not for filing or paying late. Or not paying Estimates. And is not about last year.

If you do not pay in enough tax from withholding and estimates, you may have to pay a penalty for underpayment of estimated tax. The penalty is an Estimated amount. 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

[VolvoGirl]

Oh and if you are trying to enter your 2022 tax due payment into 2022 you don't.  Just say you will mail a check   and the IRS should match it up with your payment.  How did you pay the tax due?  With a check or direct debit from your bank or credit card or directly online at the IRS?  

The penalty is for your current return for not paying enough estimates DURING the year and owing too much tax due.  

[cellardwellin]

Thank you for responding, but my version (desktop) does not give on option to add balances due for federal taxes on that page.  I have attached a screenshot of what it shows.

[VolvoGirl · Accepted solution]

This is for your 2023 return, right?  As I said above your 2022 tax due does not get entered on your 2023 return.  Only the state tax due because a state payment can be an Itemized Deduction on federal if you itemize.  2022 is done and over.  Turbo Tax is not charging you a penalty for 2022.  It's for not paying enough estimates in 2023 for your 2023 tax return.  Your 2022 Tax Due payment is not a payment for 2023.    

[cellardwellin]

Hi Volvogirl,

I'll try to address everything you wrote, thanks for responding.  I am trying to file my 2023 taxes.  My husband and I both are self-employed so we pay estimated taxes.  Up until this year, we've been paying CPAs to do our taxes so I'm trying to do it myself now, so I might be a little confused.  It seemed strange to me for the program to ask for balance due for 2022 for state and local taxes only, and nowhere to add that for federal.

We did get vouchers from our CPA last year with estimates to pay, but since they're estimates, I figured I would pay what we could (which ended up being about 90% of what the vouchers totaled) and just pay the remainder when I file if there is still a balance due, like I normally do.  So maybe, like you seem to be saying, that's the reason for the underpayment penalty. 

We paid the balance due from 2022 with a bank draft back before April 18th, 2023

[cellardwellin]

Ok, thank you, VolvoGirl.  Didn't realize that would result in a penalty, but now I do!

[VolvoGirl]

Good, I'm glad that cleared it up for you.