Question

IRS says I owe a penalty. TurboTax did not calculate this. I feel like there should be a guarantee, is there one?

Forum|Forum|3 years ago
May 20, 2023
3 replies
0 views

I would have checked more carefully my quarterly income if I knew I'd have a penalty. But TurboTax said I didn't. Now I have a bill for $1350.

TurboTax Premier Online

Critter-3

The TT program calculates an estimated underpayment penalty based on the information you enter in the program however the fed/state reserve the right to calculate an actual underpayment penalty based off the information they have on file (and based on when the balance due was actually paid) along with a late filing penalty, late payment penalty plus interest they deem needed. This is not a program error and is not covered by the accuracy guarantee.

M

Mike9241

submit a claim to Turbotax. However, this may be a situation where you are at fault and not Turbotax. it could even be an IRS error.

https://www.bing.com/search?pglt=43&q=how+to+submit+claim+to+Turbotax&cvid=5f5bc53f30ef4773bd127eb1a163e3a8&aqs=edge..69i57j0l8.10559j0j1&FORM=ANNTA1&PC=U531

fanfare

Employee

Form 2210 is the form for Estimated Tax Penalty.

Form 2210, by default, requires evenly spread (Estimated tax + withholding) installments of no less than the minimum amount.

If you did not see a penalty on 1040 Line 38, I would say TurboTax is deficient.

@lythompson

Critter-3

TT may not have been deficient if you made any input errors or overrode the penalty calculation.

N

NCPERSON1

@lythompson - let me understand.... you beleive TT should guarentee your failure to check the quarterly payments more carefully??????

Critter-3

The program does address this situation but you can always not make the payment suggested ... the next year the program assumes you made the payments suggested the prior year but you are required to confirm that the payments were made if any were made.

To enter, edit or delete estimated taxes paid (Federal, State, Local) -

Click on Federal Taxes (Personal using Home and Business)
Click on Deductions and Credits
Click on I'll choose what I work on (if shown)
Scroll down to Estimates and Other Taxes Paid
On Estimates, click on the start or update button

Or enter estimates paid in the Search box located in the upper right of the online program screen. Click on Jump to estimates paid

Or click on Tax Tools on the left side of the online program screen.
Click on Tools
Click on Topic Search
Type in estimated tax payments, click on GO

How do I make estimated tax payments?

https://ttlc.intuit.com/community/tax-payments/help/how-do-i-make-estimated-tax-payments/00/25875

When are federal estimated taxes for individual returns due?

https://ttlc.intuit.com/community/tax-payments/help/when-are-estimated-taxes-due/00/25857

Can TurboTax calculate next year's federal estimated taxes?

https://ttlc.intuit.com/community/tax-payments/help/can-turbotax-calculate-next-year-s-federal-estimated-taxes/00/26437

Can TurboTax calculate the estimated payments for next year's state taxes?

https://ttlc.intuit.com/community/tax-payments/help/can-turbotax-calculate-the-estimated-payments-for-next-year-s-state-taxes/00/25972

L

lythompsonAuthor

Thanks. Yeah I always send in money in December once I know my income (mutual funds). This year it was $200k I sent in and I owed maybe $10k in April so was pretty close.