Question

TT Download - Filed extensions and made payments. What happens if I OVER/UNDER-estimated tax liability?

Forum|Forum|3 years ago
March 30, 2023
1 reply
0 views

Please allow for me never having filed and extension before. I believe the question SUBJECT says everything you need to know. I'm using TT Download, but didn't think I'd finish until close to the 18th. I didn't want to be filing then so I made a rough estimate of what my tax liabilities, bot Federal and State would be, then filed for extensions and made payments based on the calculations outside of TT.

When I later get the final tax results in turbo tax do I still use it like I paid on time, but with the extension amounts included? What happens if the Feds/State see I under/over paid before then? If I overpaid do they wait till I finish in TT to send me the over? If I underpaid do they just charge interest till TT determines the actual underpayment and I pay it then?

Thanks, the Extension Newbie.

VolvoGirl

Employee

You get credit for the extension payment.

If your extension payment did not automatically show up on 1040 you need to enter it. So make sure it's not already there before you enter it!

For 2022 Federal Extension payments should be on schedule 3 line 10. And go to 1040 line 31.

You can type estimates paid in the search box at the top of your return and click Find and it will give you a link to Jump To the screen where you enter Extension Payments.

To enter the amount you paid with an extension (including state extension) go to

Federal Taxes (or Personal for desktop H&B version)

Deductions and Credits

Then scroll way down to Estimates and Other Taxes Paid

Other Income Taxes - Click the Start or Update button

Next page second section Payments with Extension

Either Visit All or Click Start or Update by the extension you paid

F

Final_Left_Right_20Author

Thanks Volvo.

The TT part was very helpful, but I can see I did not fully explain my question. My question was more what happens at the IRS if I underpaid! Do they just wait for the correct amount extra from TT? Are they charging interest while waiting? How do they even know what the correct tax payment SHOULD HAVE EXACTLY BEEN when neither I and TT don't know till we finish?

Hoping for more.

VolvoGirl

Employee

Yes you just finish your return and file as normal. You get credit for the extension payment like from withholding. Then you end up with a refund or tax due.

If you end up with an underpayment penalty 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