turbo tax calculated my underpayment penalty wrong

Forum|Forum|2 years ago
March 4, 2024
1 reply
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Turbo tax calculated a penalty for underpaying my 2023 tax, but I paid more in 2023 than 100% of my total tax in 2022. According to the law, I should not have to pay a penalty. There seems to no way to change this in turbo tax online without starting my taxes over again. How can I fix this?

TurboTax Premier Online

Best answer by JohnB5677

At a minimum, I want to change my option to have the IRS calculate my penalty, but there is no obvious way to change this. The penalty is small, but the more significant issue is if Turbo Tax is missing this, what else are they missing? I am saying this as someone who has used TurboTax for many years.

Yes, I can help you have the IRS calculate the penalty if there is one.

Select Tax Tools
On the drop-down select Tools
There will be 3 green boxes
Select Topics Search
Type the form number or topic.
Continue through the questions.
The last question is Let the IRS Bill Me Later

If you've covered all of your basis for taxes in 2023, there is one other criteria that has not been mentioned.

That is your total income.

You must pay the lesser of 110% of last year's tax or 90% of this year's tax if your adjusted gross income (AGI) for last year exceeded $150,000.

I'm not sure what is going on, but I do have a way to help.

You can share your return with a specialist.

The return will be "sanitized", meaning all names, social security numbers and personal references are removed.

We will then be able to determine the source of the issue.

If you agree, please follow these steps:

Log into your TurboTax account
Go to Tax Tools
Then select Tools
On the pop-up screen select Share my file with an agent
This will generate a message that a diagnostic file gets sanitized and transmitted to us.
Please provide the Token number in a reply to this post.
Include @JohnB5677 in your reply so that I get a notification.

mesquitebean

Employee

@ adcadc123

I'm a fellow user, not a tax person. It also depends on when you made the payments in 2023; it's not based solely on the total amount paid. Did you happen to underpay any quarter?

Someone familiar with the Online product should be able to tell you how to get back in your return and go to that section. TurboTax tax experts will also be joining this forum at 5AM Pacific, but they will likely want to know the same question I asked.

adcadc123Author

I paid the same amount of tax every quarter. This shouldn't matter because I paid over 100% of the tax I paid in 2022. In previous versionsTurbo tax it seemed much easier to go back and make changes. This year this has seemed to change.