Is federal tax penalty included in the payment that I owe? Where can I find the calculation?

Forum|Forum|1 year ago
March 2, 2025
1 reply
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For state return, there is an option for the state to calculate the penalty. For federal return, I can't find an option for IRS to calculate the penalty.

Best answer by MonikaK1

To avoid having TurboTax calculate the penalty, you could go to the Underpayment Penalties section under Other Tax Situations, Additional Tax Payments, and start or update the questionnaire.

When you get to the screen "Possible Penalty Exceptions", you could select "Answer yes to all questions" so that TurboTax will proceed as if you have an exception and won't calculate the penalty.

MonikaK1Answer

To avoid having TurboTax calculate the penalty, you could go to the Underpayment Penalties section under Other Tax Situations, Additional Tax Payments, and start or update the questionnaire.

When you get to the screen "Possible Penalty Exceptions", you could select "Answer yes to all questions" so that TurboTax will proceed as if you have an exception and won't calculate the penalty.

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