Tax Penalty on Line 38 question

Forum|Forum|1 year ago
April 14, 2025
1 reply
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I already e-filed my 2024 1040-SR and did pay the IRS the whole balance using my bank account during e-filing. After reviewing my printed copy of the 1040-SR I discovered to my surprise a Penalty/Interest charge of $103.0 on my 2024 Federal Tax Return Summary. While preparing my 2024 taxes on TurboTax I was not informed or directed that there was an issue with an estimated tax penalty. In 2023, I e-filed my 1040-SR and paid the whole balance on time too, so I don't know where the tax penalty on my 2024 1040-SR came from. Any advice what I should do? Thanks.

VolvoGirl

Employee

The penalty on line 38 is included in line 37 or reduced a refund on line 35a. Nothing you can do about it now. The IRS may recalculate it and send you a bill for more or send you a refund. If you had noticed before you filed we could have told you how to try to eliminate or reduce it.

It's not for filing or paying late. It doesn't have to do with last year's tax return or not paying estimates for this year. The penalty is an "estimated" amount. It's a penalty if you owe too much or for not paying in enough withholding during the year or not paying in evenly. Even if you are getting a refund you can still owe a penalty.

MyTaxQuestAuthor

I still can’t get it. How do I know I owe or I don’t pay enough? I have been using TurboTax to e-file and pay 100% returns for years on time and never got a penalty until now. Also, there is no explanation/calculation how/where the penalty came from. I received no letters/emails from IRS either. I think TurboTax needs to improve to inform users about the penalty while we are using the software since I didn’t know this until I reviewed the printing after I had e-filed. As such it’s too late to contact TurboTax to know how to eliminate it. Now, should I write to IRS or go see them at a local IRS office to get the answer?

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 or Personal (for Home & Business Desktop)

Other Tax Situations

Additional Tax Payments

Underpayment Penalties - Click the Start or update button

IRS Form 2210
https://www.irs.gov/pub/irs-pdf/f2210.pdf

IRS Form 2210 Instructions
https://www.irs.gov/pub/irs-pdf/i2210.pdf