Conflict between 2022 and 2023. Cannot both be right. If 2022 reported because tax under $500 no ES payments then in 2023 should recognize fact and not introduce a penalty
Your penalty for late payment of tax in 2023 would be based on what your tax was and how much and when you paid in taxes from withholding and/or estimated taxes for 2023. Because your tax due in 2022 when you filed your return was under $500 and you evidently timely paid in sufficient taxes, you did not get a penalty for late payment of tax that year. TurboTax may not have recommend estimated taxes for 2023 based on what happened in 2022, but if your situation changed in 2023 you may be subject to a penalty for late payment of tax.
As an example, if your income went up significantly and your tax paid in did not keep up with that, you can get penalized in 2023 for late payment of tax. Also, if your income stayed the same but your tax withheld decreased significantly in 2023, you can be subject to a penalty for late payment of tax.
You would have to go through the estimated tax section in TurboTax where you can enter your anticipated income in the next year to determine if you need to make estimated tax payments the next year and how much they should be. You will find that section in the Other Tax Situations menu, and then Other Tax Forms. Look for the Form W-4 and estimated taxes option.
After you file, anything could happen to your income over 12 months.
IRS requires you to estimate your tax and pay as you go.
The penalty comes from IRS, not TurboTax
To ThomasM125/Fanfare Thanks for prompt answer but both of you are talking around the subject does not focusing on issue. In 2022 TT filing instructions did not specify 2023 ES payments presumably as total 2022 tax was under $500. However, in 2023 return TT did not recognize the previous instructions and added a non-payment ($108) to the return. You cannot estimate in advance what your ES payments should be so both Michigan and Federal system accept that there will be no penalty if you pay the equivalent of the previous year's total taxes. Here lies the problem. TT2022 sys nor ES payments and TT 2023 says yes, they should have been paid. Very simple based on TT guarantee of paying for all penalties and interest incurred due to software issues i will be submitting a claim for $108.
Not dancing around. Your argument that 2022 TurboTax did not show ES vouchers is not going to work.
It is not easy to claim a turbotax error and win even if you have a case.
As explained above, TurboTax did not make a calculation error on your 2023 tax return, so your claim will be denied.