Turbo tax tells me I owe a penalty. If I file with Turbo tax can I deduct the penalty from the amount the program says I owe and pay that amount? If so, how?

[DoninGA]

If you have an underpayment of estimated taxes penalty it will be entered on your federal tax return, Form 1040 Line 38.  The amount on Line 38 is included in the taxes owed or it reduced the amount of tax refund.

IRS Tax Topic for the underpayment of estimated tax penalty - https://www.irs.gov/taxtopics/tc306

[VolvoGirl]

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