I filed return using turbo tax. IRS sent under payment penalty now for $199.38.Will Turbo tax help me in getting this amount addressed or covered?

[rajakhil]

I payed taxes as per estimates from Turbo tax but now I see penalty for not paying estimated tax in full. Why turbo tax estimated is wrong/ What can be done to correct it?

[JotikaT2]

It's possible the actual amount of income earned was higher than the amounts used to prepare the estimated tax payment vouchers in the prior year or your income level went above the threshold to use the 100% rate.  If this happened, you would be required to pay at least 110% of your prior year tax as opposed to 100% of your prior year tax.  Please see this link for more details on how the penalty is calculated.

In the future, you can also choose to annualize your income using the information in this link to potentially reduce your penalty if your income is not earned equally throughout the year.

[VolvoGirl]

Was there a penalty on your 1040 line 38? The penalty is just an estimate so it is possible for the IRS to recalculate it and send you a refund or a bill for more. If line 38 is blank you might have checked a box to let the IRS figure it for you.   Nothing you can do about it now.

You can go though the 2210 penalty and see if you come up with less.   Go to Federal Taxes tab or Personal tab, under Other Tax Situations and select Start by the Underpayment Penalties.