My income is unpredictable (and no W-2s) so I usually pay estimated tax based on 100% of the previous year's total tax to avoid any penalties. Have never had a problem before.
This year I'm using TurboTax and they've added an Estimated Tax Penalty on line 38 of my 1040.
All of my estimated payments were made on time. Altogether I paid slightly more than 100% of previous year.
So how are is TT calculating a penalty?
I don't think TT ever asks for the amount of tax I paid in the previous year, so do they just ignore the IRS provision I've been using for years? Or am I missing something?
