There is an underpayment penalty that may be imposed if you owe more than $1,000 in tax for the current year, which is most likely the penalty that is imposed on your return as it was filed in a timely manner.
Exceptions to the underpayment penalty are:
- You earn at least 2/3 of your gross income from farming or fishing activities and are filing your return and paying all taxes due on or before March 1
- You owe less than $1,000 in tax
- You have paid in at least 90% of the tax for the current year
- The tax paid in the current year is at least 100% of the tax shown on your prior year's return
If you meet one of these exceptions to the underpayment penalty, you can provide the information in the Other Tax Situations section. To get to this screen quickly:
- Sign in to your account and click on the orange Take me to my return button (skip this step if you are already in your return)
- Click on Search at the top of the screen
- Input "underpayment penalty" in the search box and hit enter
- The first link available should be Jump to underpayment penalty - click on this link
- You will be taken to the input area where you can provide the information
