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Why was I assessed a penalty when I owed no taxes last year. I thought there was a safe harbor.

Forum|Forum|7 years ago
June 6, 2019
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I am preparing this tax return on behalf of my late father. He had significantly more income in 2016 than in 2015 due to redemption of Series EE bonds. Turbotax assessed a penalty that I could only see once I printed the document. I don't think I should be charged this. Thank you!

TurboTax Premier Online

Best answer by IsabellaG

I'm sorry for your loss.If you have already filed the return, you can amend it to request abatement of the penalty. See below for the instructions for preparing an amended return.

To show that your father's 2016 withholding/estimated tax was at least 100% of his 2015 total taxes:

Go to the Federal Taxes tab and choose Other Tax Situations.

On Additional Tax Payments, start Underpayment Penalties (see the screenshot below).

Go through the screens all the way through to the end. Don't be thrown by the screen Possible Penalty Exception if your father's total income tax for 2015 wasn't zero. Keep continuing, and you'll get a chance to enter the rest of his information.

https://ttlc.intuit.com/replies/3288565

IsabellaGAnswer

Employee

I'm sorry for your loss.If you have already filed the return, you can amend it to request abatement of the penalty. See below for the instructions for preparing an amended return.

To show that your father's 2016 withholding/estimated tax was at least 100% of his 2015 total taxes:

Go to the Federal Taxes tab and choose Other Tax Situations.

On Additional Tax Payments, start Underpayment Penalties (see the screenshot below).

Go through the screens all the way through to the end. Don't be thrown by the screen Possible Penalty Exception if your father's total income tax for 2015 wasn't zero. Keep continuing, and you'll get a chance to enter the rest of his information.

https://ttlc.intuit.com/replies/3288565

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