Does TurboTax desktop automatically include interest owed in the federal and state "tax due" calculation?

Forum|Forum|1 year ago
June 8, 2024
1 reply
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I filed on-time federal and state extensions. Since then I've discovered I need to make additional tax payments as the federal and state "tax due" has updated while working on my taxes with TurboTax desktop.

Does TurboTax desktop automatically include interested in these estimates or do I need to manually calculate the added interest before making additional federal and state payments?

Much appreciated!

Best answer by DoninGA

TurboTax does Not calculate any penalties or interest on taxes owed. There is no need for you to do so since the IRS will send you a bill for any penalty or interest after they receive the tax payment and the tax return.

DoninGAAnswer

Employee

adamhurwitzAuthor

TurboTax calculates and includes any underpayment penalties in the shown "Federal Tax Due": "The balance due on your return includes this penalty." I believe to @DoninGA's point above this does not include failure to pay penalties. The penalties in the screenshot below only covers the category of failure to pay proper estimated tax.

See TurboTax desktop > "Personal" tab > "Other Tax Situations" > "Additional Tax Payments" section > "Underpayment penalties"