TurboTax State didn't catch underpayment of estimated taxes

Estimating your underpayment penalty is a part of the Massachusetts calculation. On the screen, Underpayment Penalty, you would have had to choose between Calculate (to leave the penalty off your return and let Massachusetts calculate the amount of the penalty for you) or Exceptions (to determine if you meet any exceptions to the underpayment penalty). Your choice on that screen would determine whether an estimated penalty would appear on your return.

Hi Lena,

Thanks for your reply and explanation. Seeing the TurboTax screen jogged my memory and you are right that I was presented with this question. I also remember finding it confusing. I was pretty sure I didn't qualify for any exceptions to the underpayment penalty, so I didn't see the point of providing more information. Unfortunately, what that meant was that I interpreted the statement "Massachusetts will calculate the penalty for you" as TurboTax will use the Massachusetts rules to calculate the penalty. I certainly did not understand it to mean that the calculation would occur after submission of the tax return and I would then get a bill!

While we strive to make accurate estimated tax payments (the penalty plus interest was under $70), it is a challenge when the final payment is due January 15th and we don't get our 1099s until weeks later.

Thanks again,
Hal