It can depend on how the underpayment penalty questions presented are answered.
In general, you will owe an estimated tax penalty when the total of your withholding and timely estimated tax payments did not equal at least the smaller of either:
1) 90% of your current year tax, or
2) 100% of your prior year tax.
TurboTax will need to know the prior year filing status, prior year tax, prior year Adjusted Gross Income and the date of when the current balance due will be paid. If that that information is entered correctly then TurboTax will calculate the amount of penalty correctly. If that information is not entered, then the penalty won’t be calculated correctly.
After entering the required information, a question is presented that asks if you want to “Pay it Now” or “Let the IRS Bill Me Later”. If “Pay it Now” is selected, then the penalty amount is included with the balance due. If “Let the IRS Bill Me Later” is selected, then the penalty amount won’t be included with the balance due, and you’ll receive a bill from the IRS for the amount due.
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