New to not receiving a refund and did not make estimated payments this past year

[MightyBright]

Last year was the first year I ever owed taxes. I was not aware of the estimated tax payments even though they clearly printed out with my printed return; why? I knew I would pay my taxes in full for this tax year and did not need what seemed to be a payment plan. Well, TurboTax for this year is NOT HELPING me with this; like what is the penalty? When do I find out or how much and when do I have to send in if any?  I owe even more this year and we are talking about a $5k+ amount. Is this true? Or can I just pay what my tax due is showing? WTH is going on with these taxes? I appreciate not having all the itemizations but at the same time I am not getting any deductions for any of my itemizations and the standard deduction is a joke.

[JulieS]

If you owe more than $1000 when you file your tax return, there may a penalty for not paying estimated payments during the year. If you live in a state that has income tax, they may have a penalty as well. 

Turbo Tax will generate estimated payments if it seems like you will owe for the next year, but you are not obligated to make them. It is your choice. You can make estimated payments, you can change your withholding or you can just pay what you owe when you file. 

Last year, so many people owed when they filed their tax returns, that the IRS waived the underpayment penalty for everyone. That has not been announced for this year yet, but it may happen again. 

[MightyBright]

Thank you for your reply. Not feeling mightybright as my user name suggests. Can you please answer other questions? I failed to change my w4 last year, but as of right now it has been changed to 0 exemptions when it was rather high in the teens. So, my tax withheld will obviously be more next year (a lot more). If I were to send in estimated payments this year and then have more withheld, how do I get my money back that I feel will obviously be owed back to me? Do I receive a tax form for my 2020 taxes from the IRS indicating the payments made and is there a spot to put that information within TurboTax?

And when the IRS and co. decide on penalties/etc where or how would I find out how much if I already sent in my tax docs or should I wait?

On another subject, although I don't meet rules on FED return for deductions, should they be put in regardless for the state return? Or have the states changed this as well?

[JulieS]

There is a place to report your estimated payments in Turbo Tax. The IRS doesn't send you anything, you just enter the amount of your payment in the estimated tax payments section. That is located in the Deductions & Credits tab.

If you have enough withheld that you don't owe $1,000 or more when you file, you don't have to make any estimated payments. 

If the IRS assesses an underpayment penalty, they will send you a letter asking you to pay the amount that they calculated. The amounts are fairly modest, usually less than 2% of the amount that is deemed paid late, but the way they calculate the amount that should have been paid, and when it should have been paid is mind boggling.

Currently the penalty calculation instructions are being revised for this year, so I don't know exactly what the final rules will be. 

Whether your state will let you itemize your deductions varies by state. California and Pennsylvania still allow the same deductions as they did in 2017.