Why did I get an underpayment penalty?

[VolvoGirl · Accepted solution]

Do you owe more than $1,000 tax due? You might be able to eliminate it or at least reduce it. You can go to Federal Taxes 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.

It's under
Federal or Personal (for H&B version)
Other Tax Situations
Additional Tax Payments
Underpayment Penalties - Click the Start or update button

If you have the desktop program you can switch to Forms Mode (click forms in the upper right (left for Mac)) and open the 2210 form.

ps....I had a refund once and still had a penalty for not paying in evenly during the year.