I used TurboTax with no errors and got penalized more money by the IRS for not estimating tax payments. Will TurboTax pick up the fee?

[arviso333]

The IRS claims there was an error in calculating estimated taxes paid will TurboTax pick this fee up?

[VolvoGirl]

Do you have a penalty on 1040 line 38?  it's not for filing or paying late.  It doesn't have to do with last year's tax return or not paying estimates for this year.  The penalty is an "estimated" amount.    It's a penalty if you owe too much or for not paying in enough withholding during the year or not paying in evenly.  It's very common and normal and expected for the IRS or state to bill you for more or send you a refund.

[Critter-3]

The program computes an estimated underpayment tax penalty based on the information YOU entered into the program however the fed/state have the right to calculate an  underpayment tax penalty based off the information they have on file and the amounts may not be the same.  This is NOT a TT error and is not covered by the accuracy guarantee.   The IRS/state may also calculate failure to pay &  failure to file penalties  plus interest and bill you for them.  

[fanfare]

OR

Use other tax software that calculates the correct Estimated Tax penalty based on the dates you paid.

@arviso333 

[Opus 17]

You always owe your correct income tax.   If you underpaid your income tax estimated payments during the year, you may owe a penalty when you file, even if you pay in full when you file.   Turbotax is not responsible if you underpaid your estimated payments during the year.  Even if Turbotax had recommended last year (on your 2021 return) that you should make estimated payments for 2022, those recommendations are only accurate if your income and deductions stayed the same in 2022.  If your income or deductions changed, the estimates would have been wrong and it would have been your responsibility to adjust the payments. 

If you underpaid your estimates, and paid in full when you filed, it is possible that a small part of the interest you owe on the penalty (not the penalty itself but the interest) could have been avoided if you had included a calculation for estimated penalties on form  2210 and paid an estimated penalty when you filed.  That interest would be about 0.5% of the tax owed.  I suppose you could file a claim for that interest, by arguing that you would have paid less interest if Turbotax had recognized that you were in a penalty situation.