The IRS expects payment on an as-you-go basis. In other words, when you get your money, they want theirs.
So if you earned more money, for example, in one quarter of the year, the IRS expects your quarterly payment to them to reflect your increased earnings. You can actually incur an underpayment penalty and still get a refund for the year. The IRS wants payment on a quarterly basis. The TurboTax FAQ I'm linking below will explain in more detail.
Why am I getting an underpayment penalty if I'm getting a refund?
*Please click the thumbs-up icon if this response was helpful.
**Please click "Mark As Best Answer" if your question has been resolved. Thank you.
*** I am NOT a tax expert. I am a seasoned TurboTax user, and volunteer to provide assistance to TT users. Nothing I post is to be considered TAX ADVICE; I bear no legal liability for responses.***
This answer has been verified for accuracy by an Intuit expert employee
