It depends. If you have a refund, it is possible to have an underpayment penalty. The IRS tax system is pay as you go. Essentially this means that when you make money they want the tax dollars on that money within the quarter. You can wait until you file your tax return but a penalty for late payment can and in most circumstances will occur.
If TurboTax is calculating no penalty because you have an overpayment in each quarter then there is no penalty.
Here are the exceptions to the penalty (Form 2210 Instructions:( Who Must Pay the Underpayment Penalty
Exceptions to the Penalty: You won't have to pay the penalty or file this form if either of the following applies.
- You had no tax liability for 2021, you were a U.S. citizen or resident alien for the entire year (or an estate of a domestic decedent or a domestic trust), and your 2021 tax return was (or would have been had you been required to file) for a full 12 months.
- The total tax shown on your 2022 return minus the amount of tax you paid through withholding is less than $1,000. To determine whether the total tax is less than $1,000, complete Part I, lines 1 through 7.
- What is Form 2210?
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
