Is there a fee waiver for the Underpayment Penalty for your first year of self-employed if you didn't pay estimated tax quarterly?

[lindseyrae8]

It's my first year filing self-employed. I only did estimated tax payments for federal because I didn't know how to send in State estimated tax payments. Is there a way to waive Underpayment Penalty for State taxes since it's my first year filing self-employed?

[RobertB4444]

Yes, but it's up to your state.  TurboTax will add the underpayment penalty to your return.  You'll need to go to your state return and request that TurboTax leave the penalty off.  Then you'll pay your tax bill with your return.

You'll probably receive a letter in the mail after you have filed with a demand for the penalty amount.  It's possible that they overlook the penalty.  Highly unlikely, but possible.  

When you receive the letter it will tell you which portion of the penalty is interest and which portion is penalties for failure to make estimated payments.  You will write a check for the interest portion and return it with a letter requesting abatement of the penalties because of initial filing errors.

Then, a couple of months later, you'll get a return letter telling you that you still owe the penalties or that they have been waived.  

Good luck.

@lindseyrae8