It is for not withholding enough tax during the year. However, if your withholdings this year were as much as your tax liability last year, you would not incur a penalty. You may avoid the Underpayment of Estimated Tax by Individuals Penalty if:
- Your filed tax return shows you owe less than $1,000 or
- You paid at least 90% of the tax shown on the return for the taxable year or 100% of the tax shown on the return for the prior year, whichever amount is less.
IRS - Underpayment penalties. TurboTax would have warned you about the penalty if you had incurred one.
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