Turbo Tax: IRS Penalty for Underpayment of Estimated Tax

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bogledogle
Posts: 295
Joined: Wed May 07, 2014 4:34 pm

Turbo Tax: IRS Penalty for Underpayment of Estimated Tax

Post by bogledogle »

Turbo tax tells me that we underpaid taxes in 2019 and gives me the option to pay a penalty of ~$500 with my taxes for the year or request the IRS to bill me for the penalty separately.

https://www.irs.gov/taxtopics/tc306

When we looked at our total income on W2s, our employers certainly deducted less taxes and we are going to pay the difference when we file taxes. Apparently, IRS could dismiss penalty if I can convince them that "underpayment was due to reasonable cause and not willful neglect".

Anyone have luck convincing the IRS to waive the penalty saying your employer screwed up tax deductions at source?
tomd37
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Joined: Thu Mar 01, 2007 10:39 pm
Location: Middle Tennessee

Re: Turbo Tax: IRS Penalty for Underpayment of Estimated Tax

Post by tomd37 »

Your post initially indicates possible a married filing jointly return and maybe multiple employers. Can you elaborate more on your particular situation please. Also did you do a 2019 update on your W-4 form(s)?
Tom D.
Housedoc
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Location: Alabama

Re: Turbo Tax: IRS Penalty for Underpayment of Estimated Tax

Post by Housedoc »

Good luck but it's your job to review withholding regularly.
cherijoh
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Location: Charlotte NC

Re: Turbo Tax: IRS Penalty for Underpayment of Estimated Tax

Post by cherijoh »

Housedoc wrote: Mon Jul 06, 2020 4:25 pm Good luck but it's your job to review withholding regularly.
+1
tomd37
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Joined: Thu Mar 01, 2007 10:39 pm
Location: Middle Tennessee

Re: Turbo Tax: IRS Penalty for Underpayment of Estimated Tax

Post by tomd37 »

After rereading the reference, and unless you meet the requirements for a waiver, I think you should get ready for a penalty assessment.
Tom D.
HomeStretch
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Joined: Thu Dec 27, 2018 3:06 pm

Re: Turbo Tax: IRS Penalty for Underpayment of Estimated Tax

Post by HomeStretch »

Did you enter the information in TurboTax to complete Form 2210 to see if you can reduce or eliminate the underpayment?

Your employers withhold income taxes based on a Form W-4 that you and spouse each complete. Are you saying your or spouse’s employer made an error in inputting your W-4s? Or are you saying you want to tell the IRS your employer screwed up (when the employer didn’t) in order to get a penalty waiver?

Be sure to increase your 2020 withholdings if necessary.
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