Why is Turbo Tax charging a penalty when I have overpaid on my Federal Tax?

[MaryZee]

I have a Federal tax overpayment of $132, yet Turbo Tax is charging a $4 penalty, so my refund is $128?  This makes no sense to me.  

[VolvoGirl · Accepted solution]

I had a refund once and got a penalty for not paying in evenly during the y ear.  

If you get a penalty on 1040 line 38, you might be able to eliminate it or at least reduce it. You can go to Federal Taxes tab or Personal 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.

How to add form 2210 for Underpayment Penalty
https://ttlc.intuit.com/community/tax-payments/help/how-do-i-add-form-2210/00/25703

It's under

Federal or Personal (for Home & Business Desktop)

Other Tax Situations

Additional Tax Payments

Underpayment Penalties - Click the Start or update button