If you are in the Federal underpayment penalty section, the Underpayment Penalty interview is only asking about Federal withholding and estimated payments. The state will have a different calculation using only state payments. If you are doing the tax withholding by quarter, the "X" should equal all of your Federal withholding from all sources. Check all of the information returns you entered in TurboTax, in case you had taxes withheld on other sources of income such as retirement, interest or dividends.
If you are using a Desktop version of TurboTax, go to Forms Mode and look at the Payments worksheet. This will show the total payments you entered.
For most filers, if your federal tax withholdings and timely payments are not equal to 90% of your current year tax, or 100% of the total tax from the prior year (whichever is less), then you may need to complete Form 2210 to determine if you are required to pay an underpayment penalty.
If your current year total tax minus the amount of tax you paid through withholding is less than $1,000, you are not required to pay the underpayment penalty and do not need to complete Form 2210.
It may help in some situations to go through the Underpayment Penalty section and answer the interview questions. The program will calculate a penalty automatically based on just the amounts and dates paid and the amount of tax due, but the penalty may be reduced depending on your answers to the questions.
The IRS may also reduce an underpayment penalty if any of the following apply:
The penalty for underpayment of estimated tax can also be removed to the extent that the underpayment is the result of a casualty, local disaster, or other unusual circumstance such that it would not be fair to impose the penalty.
See this TurboTax tips article for more information about Form 2210.
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