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ranytawfik
April 4, 2024
Solved

How can I have TurboTax let the IRS estimate my underpayment penalty and bill me later?

  • April 4, 2024
  • 1 reply
  • 0 views

Couple of points... 

(1) I'm not asking how I can eliminate underpayment penalty.

(2) I'm not asking how to do that on paper form. 

 

In prior years, TurboTax used to give the user the option to have the IRS estimates the underpayment penalty and bill me later.

This year (2024 for 2023 taxes), I can't see this option any more. TurboTax insists on calculating this underpayment penalty itself and adding it to the taxes due. 

How can I have TurboTax let the IRS estimate my underpayment penalty and bill me later?

Thanks!

    Best answer by ThomasM125

    You can go to the Other Tax Situations section and look for Additional Tax Payments in the list of menu items. Then choose the Underpayment Penalties option. On the screen that says Possible Penalty Exceptions, choose the Yes to All Questions option and the penalty on your return will be removed. The IRS will calculate your penalty based on the entries on your tax return.

    1 reply

    T
    ThomasM125Answer
    April 4, 2024

    You can go to the Other Tax Situations section and look for Additional Tax Payments in the list of menu items. Then choose the Underpayment Penalties option. On the screen that says Possible Penalty Exceptions, choose the Yes to All Questions option and the penalty on your return will be removed. The IRS will calculate your penalty based on the entries on your tax return.

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      R
      ranytawfikAuthor
      April 8, 2024

      Great. That worked. 

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