Does the TurboTax software include the penalty fee for failure to pay proper estimated taxes?

[VolvoGirl]

Yes but it is only an estimate.  It's common for the IRS to bill you for more or send you a refund.

You might be able to eliminate it or at least reduce it.  You can go to Federal Taxes tab or Personal tab, under Other Tax Situations and select Start by the Underpayment Penalties. You will answer a series of questions that may reduce or eliminate the penalty. Or you can elect to have the IRS figure the penalty for you.  It's form 2210.

It's under

Federal or Personal (for Home & Business Desktop)

Other Tax Situations

Additional Tax Payments

Underpayment Penalties - Click the Start or update button

If you have the desktop program you can switch to Forms Mode (click forms in the upper right (left for Mac)) and open the 2210 form.  If the 2210 doesn't show up in the left column, click on Open Forms at the top of the left column.  Type 2210 in the search box and open the 2210 form.  Check box C to let the IRS calculate it.

[DoninGA]

The underpayment of estimated tax penalty will be calculated by the TurboTax software and entered on the Form 1040 Line 38.

IRS website for penalties - https://www.irs.gov/payments/underpayment-of-estimated-tax-by-individuals-penalty