A penalty for what? Where on the tax return are you seeing a penalty?
Its an underpayment penalty and its not taking into account that I live in a disaster area and had an extension until 5/1.
@nykemajackson If you are referring to the Estimated tax penalty on the Form 1040 Line 38, that is based on your tax payments during tax year 2024. It has nothing to do with a declared disaster area.
Go to this IRS website for information - https://www.irs.gov/payments/underpayment-of-estimated-tax-by-individuals-penalty
You will still have an Underpayment of Estimated Tax penalty because the disaster postponement does not apply to the first three Estimated Tax payments that were due in April 2024, June 2024 and September 2024 [Edited].
You are probably correct that TurboTax is miscalculating the penalty because the disaster would have postponed the third and [edited] fourth Estimated Tax Payment due date. TurboTax should have a question that asks if you want the IRS to calculate the penalty. Then it will be removed from your tax return and the IRS will send you a separate bill with the correct amount of the penalty.
Edited: It seems like the third quarter payment in September was also postponed.