The IRS says TurboTax "miscalculated your 2023 estimated tax penalty.” Will Intuit refund what I paid them to do my 2023 federal taxes?

Forum|Forum|11 months ago
April 20, 2025
1 reply
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I used TurboTax to complete and e-file my 2023 federal tax return. Since then, I received a letter from the IRS that says, “We reviewed your Form 1040 for the tax year ending 2023 and found that you miscalculated your estimated tax penalty.” Included was a refund check to me for this error. TurboTax says they have a “100% Accurate Calculations Guarantee.” Will TurboTax refund what I paid them for my 2023 federal return since they miscalculated my estimated tax penalty?

Best answer by VolvoGirl

"The underpayment penalty on 1040 line 38 is just an estimate."

Not good enough. TurboTax must do better.

@VolvoGirl

It even says on 1040 line 38 ESTIMATED tax penalty. If you had noticed it before and for next year…..

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.

It's under

Federal or Personal (for Home & Business Desktop)

Other Tax Situations

Additional Tax Payments

Underpayment Penalties - Click the Start or update button

If you have the desktop program you can switch to Forms Mode (click forms in the upper right (left for Mac)) and open the 2210 form. If the 2210 doesn't show up in the left column, click on Open Forms at the top of the left column. Type 2210 in the search box and open the 2210 form. Check box C if you want to let the IRS calculate it.

VolvoGirl

Employee

The underpayment penalty on 1040 line 38 is just an estimate. It’s common for the IRS to recalculate it and send you a bill for more or a refund. You could have even left it off your return and let the IRS calculate it. Turbo Tax can not figure it accurately because they don't know exactly when the IRS or state will get your return and tax due payment.