Can An employed physician be penalized for failure to pay estimated quarterly taxes. My AGI went from 345 to 371(22 to 23 returns) I paid 21K in 22 with no penalty

[48908d580c30]

I paid 20k this year. IRS states I owe them 500 in penalty. I have never paid quarterly estimated taxes in 40 years.

[Bsch4477]

The IRS will not charge you an underpayment penalty if:

1. You pay at least 90% of the tax you owe for the current year, or 100% of the tax you owed for the previous tax year, or.
2. You owe less than $1,000 in tax after subtracting withholdings and credits.

[Mike9241]

since it seems your AGI for 2022 was over $150K you have to pay in on estimates and withholding either 90% of 2023 tax or $110% (not 100%) of your 2022 tax.

the same rules apply for 2024.

pay in through withholding and timely estimates 90% of 2024 tax or 110% of 2023 tax. 

[fanfare]

Are you a W-2 employee? a jump in income could cause a problem.

You have the option to ask IRS to calculate your penalty instead of TurboTax in which case do not pay the penalty now.

I don't understand the claim by others the TurboTax penalty is an estimate.

Other tax software calculates the correct penalty, not an "estimate" that IRS has to correct.

@48908d580c30