California Underpayment Penalty

Forum|Forum|6 years ago
March 2, 2020
2 replies
0 views

I made estimated tax payment of 120% of 2018 California taxes in a timely manner. Turbotax, however, is calculating an underpayment penalty on my 2019 taxes. I cannot find the safe habor to eliminate the penalty. Am I missing something? Should I just pay the penalty?

AmyC

Employee

You followed these steps:

In the federal section,
under Deductions and Credits,
Under Estimates and Other Taxes Paid,
next to Estimated, START
you entered the payment to CA.

The program should be calculating for you. Please reply with what you are seeing for more clarity, if needed.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

Localnet

Do not understand AmyC advice below re TurboTax saying there is an underpayment penalty due even though 2108 CA est tax was paid on time. Advice points to the Federal section "Deductions & Credits" but MY copy of TurboTax Business version shows ONLY "Deductions" and nothing about "Credits". AmyC advice points to "Estimates and Other Taxes Paid" but NO such entry area exists in my copy of TurboTax Business. My copy shows a section for "Taxes & Licenses" (and that page lets me enter my CA est tax payment OK, but I'm still getting TurboTax telling me I owe more to CA.....)

How do I solve MY problem with TurboTax making an underpayment penalty estimate?

frustrated10

I have the same problem and it is a bug that needs to be fixed. The problem is in Form 5805 part II line 5. That number is not correct! It says it is coming from California Carryover Worksheet line 2, but it isn't the number that is there. (That number is correct.)

I too put in much more than the 110% required. We sold our house and owe lots of tax, but not an underpayment penalty.

HOW DO WE MANAGE TO REPORT THIS AND GET IT FIXED???