If the underpayment penalty has already been calculated by Turbo Tax, what more do I need to do?

[lakelandlambos]

If turbo tax has already calculated the underpayment penalty for me, why do I have to give info about my 2023 tax laiablity?

[KeshaH]

By entering your 2023 liability, you might be able to reduce or eliminate your underpayment penalty.

To avoid a penalty, you have to pay in at least 90% of your current year tax liability or 100% of your prior year's tax liability* - whichever is smaller. TurboTax starts out by calculating based on your current year liability. However, if your 2023 liability was much smaller, even zero, you can eliminate your penalty if you paid in at least that amount.

*If your income in the prior year was more than $150,000 ($75,000 for married filing separately), you'd need to pay at least 110% of the prior year's liability to avoid penalty.