Question

Should Turbo Tax deduct my penalty fee from the federal tax due?

Forum|Forum|5 years ago
January 30, 2021
1 reply
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Turbo Tax deducted my penalty fee from the federal tax due. The penalty fee should be added not subtracted. How can this be fixed?

TurboTax Deluxe Online

VolvoGirl

Employee

What penalty? Maybe you have a refund not a tax due.

H

hprice300Author

If your federal tax due is a large amount, IRS expects you to pay more during the year. If you don't pay estimated taxes quarterly you may be subject to a penalty on top of what you owe. I can do my own taxes. We both had the same federal tax due, then Turbo Tax deducted the penalty from my federal tax due for 2020 which reduced the amount I owed. It should be added or not included at all. IRS can bill me.

VolvoGirl

Employee

Oh Form 2210 underpayment penalty won't be ready until Feb 11. So you need to wait to file for that. There's no hurry to file. The IRS doesn't open filing until Feb 12.

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