TurboTax Incorrectly Computed that I Had a Penalty

Forum|Forum|11 months ago
April 9, 2025
2 replies
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I successfully filed my 2024 taxes using the desktop version of TurboTax. TurboTax calculated that I owed a $157 penalty. When the IRS processed my return, they said I miscalculated and did not owe a penalty. They are sending me a $157 refund check. I did not lose any money, but feel I should report that TurboTax miscalculated my return.

Best answer by VolvoGirl

No it's not a problem. Turbo Tax only estimates the penalty. They don't know what the actual penalty should be. It's very common for the IRS to reduce it or send you a bill for more. Or you could go though Form 2210 to try to reduce or eliminate it. You can even select to let the IRS figure it for you.

VolvoGirlAnswer

scottsh115Author

Thank you for replying. The IRS caught the error and corrected it. I just thought it was weird that TurboTax computed a penalty. None of the documents that TurboTax dumps (even when all calculation sheets are specified) included Form 2210, which is the one for calculating a penalty. The $157 just showed up on Line 38. Very strange.

ca2012

I too had a penalty added to my 2024 return that the IRS just refunded as an unnecessary payment. Nothing in Turbo Tax explains why or how the figure was computed.

jh6u

Same problem here. How to adjust this so that Turbotax will have recorded the refund? I don't see an option to adjust the penalty.

VolvoGirl

@jh6u Did the IRS adjust the penalty on 1040 line 38? You don’t need to adjust your filed return for that or record the refund. It doesn’t need to transfer that to next year.

ca2012

I received the letter saying I over paid and then a couple days later received a check for the entire penalty shown on my return. Not sure what I’ll need to do for TT next year. I supposed it was viewed as a return of penalty though and not an adjustment to my tax liability/paid.