Why is there an underpayment penalty? Both my one time tax events happened in Apr and May 2017 and I made an over payment of estimated taxes for those on June 12, 2017.

[HelenC1 · Accepted solution]

To reduce or possibly even eliminate your underpayment penalty,  search for "annualizing your tax" (use this exact phrase) inside TurboTax. By doing the annualizing worksheet, you match your income to the quarter it was received and the quarter you paid your estimated income tax, thus eliminating the penalty.

This will take you to the underpayment penalty section, and we'll take you through the steps to possibly reduce your underpayment penalty. (Note: If you don’t see "Jump to annualizing your tax" make sure you’re in your return, and not still on the Tax Home page.)

Related information:

• How do I add Form 2210?

Source: TurboTax FAQ 

[Edited 3-18-2020|7:27 am PST]