To be clear, the IRS lowered my withholding for 2018(income higher than 2017), and is now charging me an underpayment penalty?

[CarolynM · Accepted solution]

Yes.

The IRS changed the withholding tables to reduce what employers take out of your taxes.

However, they did change the rate for underpayment penalty. Previously, there was penalty if you did not pay unless you were 10% off. Now, there no penalty unless your are 15% off.