I want to know why I am getting the udenrpayment penalties for 22 tax returns accourding to Turbo tax. However, I filed it via Turbotax.

[akihiko_nakagawa]

It looks like the marriage status change is causing this. I got married in 2022. And I filed it as Married filing jointly.

[JohnB5677]

Please clarify your question.

• Are you just now filling your 2022?
• If you owe any tax, there will be a penalty.
• Married filing Jointly can change your tax situation.
• How did you file before?

Please contact us again and provide some additional details.

[akihiko_nakagawa]

Thank you for your reply.

I was just filing the tax return for 2023. 

During that, the TurboTax showed "Under Payment" as your uncommon tax situation.

However, I have no idea of this underpayment because I filed the tax return 2022 as Turbo Tax instructed. I have got even the tax return. I did not have any tax to pay for 2022 when I filled last year.

I got married in the middle of 2022. And the filling status for 2022 was "Married Filing Jointly". And, the staus for 2023 is the same. 

[JohnB5677]

Changing Marital Status will change your tax obligation, but if you owed a penalty in 2022 it would be included on the 2022 tax return.

Why do you think this is a 2022 penalty, and not for 2023?

Please check your 2023 tax return.

You can preview your tax return by going to:

1. On the menu bar on the left that shows.
2. Select Tax Tools
3. On the drop-down select Tools
4. On the popup menu
5. Select View Tax Summary
6. On the left sidebar
7. Select Preview my 1040.
8. Schedules 1,2&3 are included if you scroll down past your 1040.
9. To return to the entry screens press Back on the sidebar.

Some key numbers on your 1040 tax return are:

Line 37 - Tax owed.

Line 38 - Penalty for 2023

The underpayment penalty will be assessed if any of these apply:

"If you don’t pay enough tax through withholding and estimated tax payments, you may have to pay a penalty." 

"You also may have to pay a penalty if your estimated tax payments are late, even if you are due a refund when you file your tax return."

Estimated taxes

• The amount of tax you paid during the tax year is less than 90% of the tax that you owed for the current year. 
• The amount you paid during the tax year did not equal 100%, (110% for higher incomes) of your taxes owed the prior year. 
• The IRS also says you can probably avoid the penalty if the amount you owe is less than $1,000, after subtracting withholding and refundable credits.

"Typically, underpayment penalties are 5% of the underpaid amount, and they're capped at 25%. Underpaid taxes also accrue interest at a rate that the IRS sets annually."

To avoid this situation it is recommended that you adjust your W-4 with your employer or pay estimated taxes.

Underpayment of Estimated Tax by Individuals Penalty

Please contact us again with any questions, and provide some additional details.

[VolvoGirl]

That's not for filing or paying late. And is not about last year. If you do not pay in enough tax from withholding and estimates, you may have to pay a penalty for underpayment of estimated tax. Even if you are getting a refund you can still owe a penalty for not paying in evenly during the year. Generally, most taxpayers will avoid this penalty if they owe less than $1,000 in tax after subtracting their withholdings and credits, 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. It is included in your tax due or reduces your refund.

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.

It's under

Federal or Personal (for Home & Business Desktop)

Other Tax Situations

Additional Tax Payments

Underpayment Penalties - Click the Start or update button

[akihiko_nakagawa]

Sorry for being late to reply to you. You are right.

My company did not deduct enough withholding.

Thank you for your help!