The IRS calls it “Underpayment of Estimated Taxes,” but that can be a little misleading. While the penalty (reported on Form 2210) is more commonly incurred by self-employed people who do make estimated payments (or should), it’s also relevant for anyone who underpays their taxes during the year (with a withholding plus refundable credits total which is $1,000 less than the tax liability on their return). The IRS gives a summary of this here.
Note that there are some nuances to this. If your income suddenly jumped (hopefully because you won the lottery) this year, you can avoid the penalty by having withholding and refundable credits equal to last year’s tax. You can also possibly reduce the penalty (with the “annualized method”) if you income was inconsistent (especially if it was significantly higher later in the year). TurboTax will explore these things with you to make sure the penalty is correct, @whaag, but hopefully I’ve answered your most recent question.
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