State of MIchigan calculated penalties and interest for 2019

[Sandra1]

How do I get the Proseries basic program to over-ride the calculation of penalties and interest for 2019. This client underpaid estimates and owed in 2018, but Michigan is waiving penalties and interest for the 2019 returns..

[IRonMaN · Accepted solution]

Is there a box on the form like the federal that asks for last year's tax?  If there is, enter zero and see what happens.

[Just-Lisa-Now-]

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@Sandra1 wrote:

How do I get the Proseries basic program to over-ride the calculation of penalties and interest for 2019. This client underpaid estimates and owed in 2018, but Michigan is waiving penalties and interest for the 2019 returns..

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Even for underpayment through the year?

[Sandra1]

The State of Michigan is waiving all penalties thru July 15, 2020 if the return is filed on time. I am filing this clients return by Monday. So I just input that liability was zero for 2018 (which it wasn't). On the Federal there is a line that you can elect; whereas, the Federal government will bill the client. I was hoping that was true for the State of MI, but no... It is automatically calculating the penalties and interest based on the 2018 and 2019 tax due...

[Sandra1]

Sorry! This client is paying what he owes now. He is not waiting to file or pay...

[IRonMaN]

"It is automatically calculating the penalties and interest based on the 2018 and 2019 tax due"

But like I said, change the 2018 tax to zero.

[Sandra1]

There is a line that asks for 2018 last years tax so I entered zero as you advised and it got rid of the penalties and interest that it was calculating... Thank you

[IRonMaN]

You betcha!