I cannot find anything to answer my question. Also, my specific concern deals with a EE bond cashed, Taxable interest entered correctly-but TT shows a penalty for "underpayment of your estimated taxes" -this makes no sense since I don't estimate any taxes.
The IRS tax system is pay as you go. Essentially this means that when you make money they want the tax dollars on that money within the quarter. You can wait until you file your tax return but a penalty for late payment can and in most circumstances will occur.
Here are the exceptions to the penalty (Form 2210 Instructions:( Who Must Pay the Underpayment Penalty
In general, you may owe the penalty for 2022 if the total of your withholding and timely estimated tax payments didn't equal at least the smaller of:
There is a annualization method that you can try if you received the EE bond interest late in the year, otherwise it may not be beneficial.