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July 4, 2020
Question

Do I have to pay penalty for 2019? for 2018 my CPS submitted my taxes at the end of the year making my high taxes and penalty again?

  • July 4, 2020
  • 1 reply
  • 0 views
I am preparing my taxes with turbotax for my self and the program is already telling I have to pay penalty again

1 reply

VolvoGirl
Employee
July 4, 2020

Have you been sending in estimated payments during the year?  Why do you end up owing a tax due each year?

 

f you do not pay enough tax, you may have to pay a penalty for underpayment of estimated tax. 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