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April 27, 2025
Question

I am in a disaster areas and the software is calculating a penalty? How can I fix it?

  • April 27, 2025
  • 1 reply
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    1 reply

    DoninGA
    Employee
    April 27, 2025

    A penalty for what?  Where on the tax return are you seeing a penalty?

    April 27, 2025

    Its an underpayment penalty and its not taking into account that I live in a disaster area and had an extension until 5/1. 

     

    https://www.irs.gov/newsroom/irs-announces-tax-relief-for-victims-of-hurricane-helene-in-georgia-various-deadlines-postponed-to-may-1-2025

    DoninGA
    Employee
    April 27, 2025

    @nykemajackson If you are referring to the Estimated tax penalty on the Form 1040 Line 38, that is based on your tax payments during tax year 2024.  It has nothing to do with a declared disaster area.

     

    Go to this IRS website for information - https://www.irs.gov/payments/underpayment-of-estimated-tax-by-individuals-penalty