TurboTax will enter an estimated tax penalty on the Form 1040 Line 38 if a penalty is required. The penalty will be included in the taxes owed or it will reduce the amount of a tax refund.
If you are responsible for an underpayment penalty, the program will automatically compute and add that amount to your return, and reduce any refund or increase your tax liability as applicable.
Enter Underpayment Penalty here.
TurboTax added a $456 Tax Penalty to my 2024 Taxes on Line 38. The underpayment amount was $1000, so the total I owe is $1456. This year, I used both TurboTax and FreeTax, as a comparison. FreeTax computed No tax penalty. So I think I'll file with them. I paid $63,000 of taxes in calendar year 2024, so my underpayment was very minor. Seems like a steep tax penalty that TurboTax calculates. 50% of payment due.
@pablokent If you get a penalty on 1040 line 38, 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.
How to add form 2210 for Underpayment Penalty
https://ttlc.intuit.com/community/tax-payments/help/how-do-i-add-form-2210/00/25703
It's under
Federal or Personal (for Home & Business Desktop)
Other Tax Situations
Additional Tax Payments
Underpayment Penalties - Click the Start or update button