I paid 100% of 2023 tax as estimate tax payments for 2024. Turbo tax is computing an underpayment penalty. I do not owe this

[mjssandy]

Why do I owe an underpayment penalty for 2024 if I paid 100% of the prior2023 year tax as estimated taxes?

[VolvoGirl]

You probably need to annualize your income and estimated payments.  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 tab or Personal (for Home & Business Desktop)

Other Tax Situations

Additional Tax Payments

Underpayment Penalties - Click the Start or update button

[rjs]

Was your 2023 AGI (Form 1040 line 11) more than $150,000 ($75,000 if you filed as married filing separately)? If so, you had to pay 110% of your 2023 tax to avoid a penalty.

[baldietax]

and did you pay the estimated tax evenly/quarterly thru the year by the deadlines.  if not that's another reason for an underpayment penalty even if you meet the total by year-end (or even have a refund).