Yes you will owe a penalty based on a balance due.
2. The IRS will eventually bill you and Turbo Tax will calculate up to the date of filing.
3. IRS will calculate your penalty up to the time of payment. It may take the IRS a few weeks to issue a bill for taxes due and penalty.
However, it sounds like this is your first time owing taxes at the end of the year and therefore might qualify for a penalty waiver.
If you have been assessed an underpayment penalty, then you can see if you may qualify for an exception to the penalty. You may want to look into these exceptions if this is the first year you owed tax and it is not a normal occurrence (i.e. you had one time income this year).
Generally, most taxpayers will avoid this penalty if they either owe less than $1,000 in tax after subtracting their withholding and estimated tax payments, or if they paid at least 90% of the tax for the current year or 100% of the tax shown on the return for the prior year, whichever is smaller."
You can review the underpayment penalty section by using one of the following two methods
First, you can perform a search within the program.
- Log in and click Take Me to My Return
- Use the search icon in upper right-hand corner (magnifying glass icon)
- Search for “underpayment penalty”
- Click the “Jump to underpayment penalty” link
- This will take you directly to the section of the program where you can review the underpayment penalty and possibly qualify for an exception
Second, you can use a step by step method of getting to the same place above
- Log in and click Take Me to My Return
- Click Federal Taxes (Personal if in Self-Employed)
- Select Other Tax Situations
- Scroll down to Additional Tax Payments
- Click start/edit next to Underpayment Penalties
Click here for more information: Underpayment Penalty
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
