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I have an underpayment penalty even though I'm getting a refund. Is it possible to deduct the penaly from the refund, or must I pay it separately?

Forum|Forum|6 years ago
March 1, 2020
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Best answer by Kat11_2

An underpayment penalty may be assessed if your income varied quarter-to-quarter.

It is standard procedure that your underpayment penalty will be deducted from any federal refund due you, if that refund is sufficient to cover the penalty.

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Kat11_2Answer

Employee

An underpayment penalty may be assessed if your income varied quarter-to-quarter.

It is standard procedure that your underpayment penalty will be deducted from any federal refund due you, if that refund is sufficient to cover the penalty.

*Please click the thumbs-up icon if this response was helpful.
**Please click "Mark As Best Answer" if your question has been resolved. Thank you.

*** I am NOT a tax expert. I am a seasoned TurboTax user, and volunteer to provide assistance to TT users. Nothing I post is to be considered TAX ADVICE; I bear no legal liability for responses.***