Estimated Tax penalty shown on line 38.

Forum|Forum|1 year ago
March 15, 2025
2 replies
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First time user of Turbo Tax. 2023 Tax Refund applied to 2024 return was more than 100% of 2023 Tax liability. Penalty for 2024 should be waived, but it shows penalty on line 38 of 2024 Return

TurboTax Premier Online

Best answer by VolvoGirl

If you get a penalty on 1040 line 38, 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.

How to add form 2210 for Underpayment Penalty
https://ttlc.intuit.com/community/tax-payments/help/how-do-i-add-form-2210/00/25703

It's under

Federal or Personal (for Home & Business Desktop)

Other Tax Situations

Additional Tax Payments

Underpayment Penalties - Click the Start or update button

VolvoGirlAnswer

Employee

How to add form 2210 for Underpayment Penalty
https://ttlc.intuit.com/community/tax-payments/help/how-do-i-add-form-2210/00/25703

It's under

Federal or Personal (for Home & Business Desktop)

Other Tax Situations

Additional Tax Payments

Underpayment Penalties - Click the Start or update button

baldietax

maybe timing issue as underpayment is assessed quarterly not just total annual amount - if the refund was applied to your estimated taxes after the Q1 estimated tax deadline (4/15) you may still be assessed an underpayment penalty for Q1 even tho you met the annual 'safe harbor' requirement in total.

In desktop version you can click in Forms mode thru the penalty line on Form 1040 or go to Form 2210 directly and see the calculations and which quarter got the penalty and why, not sure equivalent process in TT online but you be able to see Form 2210.

Adopting the Annualized Income method may not help the penalty if the issue was the timing of the payment, rather than the timing of your income/tax and that was otherwise uniform thru the year.