Underpayment Penalty confusion

[valquest76]

I have an underpayment penalty of $415.

I do NOT make quarterly tax payments.

I filed my taxes last year on April 13, 2022 and paid the amount IN FULL and ON TIME.

I am so confused even after trying to read about this as to why there is a penalty?!?! I've never seen this before and can't figure this one out.

[SharonD007]

The underpayment penalty isn't referring to the taxes that you paid for tax year 2022.  It's for you tax liability for 2023.

The tax system is a pay as you go system. If you don't have enough withholding from your paycheck or you are self-employed and don't pay estimated taxes throughout the year, you can get hit with an underpayment penalty .  Review the IRS topic 306, Penalty for underpayment of estimated tax for additional information.

Also, review the TurboTax Help article Why am I getting an underpayment penalty?