The IRS employs a pay-as-you-go system. When you don't make quarterly estimated tax payments for your self-employment income, the IRS assesses a penalty for underpayment of estimated tax. Here's how it works:
- If you are responsible for an underpayment penalty, TurboTaxwill automatically compute and add that amount to your return, and reduce any refund or increase your tax liability as applicable.
- To Enter/review Underpayment Penalty here.
- Open your return (if not already open).
- Enter "underpayment penalty" in the Search box.
Click on "Jump to underpayment penalty" link.d
TurboTax - Does TurboTax Automatically Add Underpayment Penalties
