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xyu8701
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We got a letter from IRS saying our estimated tax penalty was miscalculated and we overpaid $194.15. How could this happen?

We already received the refund from IRS. However, this is not a refund making us happy. We are concerned the accuracy of the tax return calculation.
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We got a letter from IRS saying our estimated tax penalty was miscalculated and we overpaid $194.15. How could this happen?

The IRS always has the final word on penalties.  Anyone else, including turbotax, can only make an estimate.  

If you made quarterly estimated payments that ended up being insufficient, you may owe a penalty even if you get fully paid up by the deadline (April 18 for this year).  The problem is that you might have had more income in one quarter than another and paid more taxes one quarter and less another, while the IRS might look at your overall payments and decide the low payment was too low for that quarter.  The opposite can also be true; if you made 4 equal payments but your income one quarter was much higher, the IRS might decide you should have paid more in that quarter than you did.  Turbotax doesn't have access to the same level of income detail the IRS has, and so penalties calculated by Turbotax are really just estimates.

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