Estimated Tax Pyment underpayment penalty

Forum|Forum|2 years ago
April 7, 2024
1 reply
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Hello,

TT is figuring an underpayment penalty for my federal estimated tax for 2023, even tough it calculates a federal refund for my taxes. The tax payments I made for 2023 exceeded the 90% of 2022 taxes.

I'm in one of the counties that had an automatic disaster relief tax extension for 2023 from April 15 to October 16, so I made the 3 payments due in 2023 on September 15 2023. Because of this it calculates an underpayment penalty for the estimated payments due on 4-15-2023 and 6-15-2023.

How do I get this corrected since part of the disaster relief the estimated payments were also postponed?

Thank you

TurboTax Home & Biz Windows

Best answer by JulieS

Yes, you can and should request a penalty waiver since you were impacted by a federally declared disaster.

Here's how to do that:

Sign in to your TurboTax account.
Select Other Tax Situations.
Select Start or Edit to the right of Underpayment Penalties.
Answer the first several screens according to your situation.
When you get to Penalty Waivers, answer Yes.
Answer Yes to You Can Request a Waiver.
Answer Waive all to Do You want to Reduce Your Penalty?
In the explanation box enter, "California, severe winter storms, flooding, and mudslides", or a similar statement if yours was a different disaster.
Continue through the end of the section.

JulieSAnswer

Yes, you can and should request a penalty waiver since you were impacted by a federally declared disaster.

Here's how to do that:

Sign in to your TurboTax account.
Select Other Tax Situations.
Select Start or Edit to the right of Underpayment Penalties.
Answer the first several screens according to your situation.
When you get to Penalty Waivers, answer Yes.
Answer Yes to You Can Request a Waiver.
Answer Waive all to Do You want to Reduce Your Penalty?
In the explanation box enter, "California, severe winter storms, flooding, and mudslides", or a similar statement if yours was a different disaster.
Continue through the end of the section.