@lunac0231 wrote:
Thanks @Mike9241 , is my understanding correct that even if I pay enough estimated taxe now to cover my entire year of owed tax for 2023, I still need cannot avoid penalties?
It's a bit complicated and we don't know all your facts. In general, the IRS assumes income is earned evenly over the year and that taxes should be paid evenly. So you may be assessed a penalty for underpaying during the year even if you pay in full by January 15.
If your income was uneven (more in some quarters and less in others), you might be able to reduce your penalties by using the "annualized" penalty calculation method.
Also, if this is the first time you will have owed a penalty, I suggest that if Turbotax suggests you owe a penalty and offers to include it for you, that you decline the calculation and wait and see if the IRS bills you for a penalty. At that point, you can apply for a waiver for cause or as a first-timer. (It's easier to apply for penalty abatement when you get a bill, hard to apply for relief after you already paid it.)
