An estimated tax penalty is a penalty for failing to pay enough tax during the year.
Our tax system is considered a pay as you go system. If you don't have enough tax withheld from your job, your pension or other income, you are expected to make estimated tax payments during the year. The penalty is for not doing that.
Many people assume that as long as they pay by the filing deadline, it is on time, but the IRS expects about 1/4 of your taxes be paid during each quarter on the year.
You may be able to get part, or all your penalty waived by reviewing the estimated tax penalty section in TurboTax.
1. Log in and Continue your return.
2. Select Other Tax Situations at the top center.
3. Scroll down to Additional Tax Payments, click Show more on the right.
4. Select Underpayment Penalties.
5. Answer the questions in this section based on your situation.
Please note for 2020, the tax filing deadline is July 15, 2020.
Click here for more information.
[Edited 03/24/20 | 10:57 am PST]
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