I have been using TurboTax for years and have always been pleased with the ease of entering data and the level of detail the program provides for both Federal and State taxes. However, today I received a notice from the Delaware Division of Revenue stating that I owe a penalty for "underpaying estimated income tax" on my 2022 Delaware state taxes.
I have relied on TurboTax to help fulfill these requirements, similar to how the program provides estimated tax coupons for federal taxes. However, this didn’t happen for Delaware. I had no idea that estimated taxes were required until I conducted extensive research this evening. It turns out that Delaware requires estimated tax payments if the tax due to the state exceeds $400 in a given year.
Why didn’t TurboTax provide me with the necessary information to file quarterly estimated taxes and avoid these penalties? I am likely to be exposed to additional fines?