Depending on all of the applicable facts, it's still possible to have an underpayment penalty even though you are receiving a refund.
Also, each state's rules may be different. For Illinois, if you:
- have a tax liability greater than $1,000 after subtracting your withholding, pass-through withholding payments, and credits, or
- were required to make estimated tax payments and failed to pay the required amount by the payment due dates, you may owe a late-payment penalty for underpayment of estimated tax. See Form IL-2210 for details.
Check to see whether all of the state estimated payments were entered. Navigate to the estimated tax payments section:
- TurboTax Online/Mobile: Go to estimated tax payments under Deductions & Credits.
- TurboTax Desktop: Go to the Federal Taxes, then Deductions & Credits. Select Estimates and Other Taxes Paid.
- Select Start or Revisit next to the type of estimated tax payment you'd like to enter under Estimated Tax Payments.
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