My estimated taxes were fully paid in December 2023. The amount paid was exactly equal to the tax due and paid in 2022, and was 143% of the tax due for 2023. Turbotax estimated a penalty for underpayment in 2023. The IRS simply refunded what Turbotax computed which included the penalty.
Both IRS topic 306 and turbotax guideline: "https://turbotax.intuit.com/tax-tips/irs-letters-and-notices/guide-to-irs-tax-penalties-how-to-avoid..." state the following regarding avoiding penalty for underpayment:
Penalty for underpayment of estimated tax:
most taxpayers will avoid this penalty if they either owe less than $1,000 in tax after subtracting their withholding and refundable credits, or if they paid withholding and estimated tax of at least 90% of the tax for the current year or 100% of the tax shown on the return for the prior year, whichever is smaller. "
How can I recover the penalty paid?
