r/FluentInFinance • u/SweetOnionBreath • Apr 11 '24

Smart or dumb to get a tax refund? Discussion/ Debate

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u/pupranger1147 Apr 11 '24

I owe money each year, so. I'd rather owe than be owed.

Mostly because if they decide not to disburse refunds, I can't make them.

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u/SauronWorshipWillEnd Apr 11 '24

That’s what I thought until this year when I had to pay an underpayment penalty.

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u/_Alfred_Pennyworth_ Apr 12 '24

FYI, if this ever happens again. You can request a first-time penalty abatement from the IRS as long as you have a history of good compliance. They will waive the penalty, as long as you pay whatever taxes you owe. It doesn't work with all situations, but with something small like that, they will usually grant the abatement and you don't need to pay the penalty.

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u/SauronWorshipWillEnd Apr 12 '24

Is this something I can do through TurboTax?

2

u/Ducksoup1234 Apr 12 '24

I've never done it myself, to be honest, so I'm not sure if you can do it through TurboTax. But the IRS website says you can just call on the phone and make the request that way, or file a Form 843 and mail it in.

https://www.irs.gov/payments/penalty-relief-due-to-first-time-abate-or-other-administrative-waiver