Fed Tax Penalty on less than $150 owed

Forum|Forum|11 months ago
April 23, 2025
1 reply
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Federal Taxes: on a recent Return, I had underpaid my taxes by $150 and was charged a PENALTY of $60.

Yet IRS website states that usually no penalties if you owe less than $1500. Please explain why Turbo Tax calculated this penalty. Thx.

Ask the Experts - Amend - April 2025

RobertB4444

The calculated penalty may have had to do with the timeliness of your estimated payments? Did you make some of them late or make all of them in the last part of the year? Or pay a bunch with an extension?

@gomes_f

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gomes_fAuthor

Did the Roth conversion (total amount) in Dec, one time, and Paid the full taxes on it in Dec same year. There were no estimated payment made as I did not know until the end of the year that I would make the roth conversion. a dilemma!

VolvoGirl

Employee

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 tab or Personal (for Home & Business Desktop)

Other Tax Situations

Additional Tax Payments

Underpayment Penalties - Click the Start or update button